SpaceX Makes First-Ever Investment in Musk’s AI Firm xAI

Elon Musk’s company SpaceX has agreed to invest $2 billion in his artificial intelligence firm xAI, which amounts to nearly half of the recent capital raised by chatbot developer Grok, CE Report quotes ANSA.

This was reported by The Wall Street Journal, citing investors close to the two companies.

Musk has repeatedly leveraged his business empire to boost the AI startup, which is aiming to compete with OpenAI.

Earlier this year, he merged xAI with X (formerly Twitter), combining what was a small research lab with a social media platform that helps amplify the reach of the Grok chatbot.

The merger valued the new company at $113 billion. The SpaceX investment is part of xAI’s $5 billion capital raise announced last month by Morgan Stanley. It marks the first known investment by the rocket manufacturer into xAI and is one of its largest investments in another company to date.