SpaceX to invest $2 billion in Musk's xAI startup, WSJ reports

Reuters

According to a Wall Street Journal report on Saturday, SpaceX is investing $2 billion into xAI as part of a broader $5 billion equity funding round, strengthening the connection between Elon Musk’s various ventures.

The investment comes after xAI’s merger with X and places the combined entity’s valuation at $113 billion. xAI’s Grok chatbot is now being used for Starlink customer support and may be integrated into Tesla’s Optimus robots in the future.

Although Grok has faced criticism over some of its responses, Musk continues to promote it as “the smartest AI in the world.” Meanwhile, xAI remains focused on major investments in model development and infrastructure.

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