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

SpaceX has committed $2 billion to xAI as part of a $5 billion equity round, deepening the ties between tech billionaire Elon Musk’s ventures as his artificial intelligence startup races to compete with rival OpenAI, the Wall Street Journal reported on Saturday.

According to Reuters, the investment follows xAI’s merger with X, valuing the combined company at $113 billion. The Grok chatbot is now powering Starlink support and is eyed for future integration into Tesla’s Optimus robots, the report added.

SpaceX and xAI did not immediately respond to Reuters’ requests for comment.

Despite recent controversies surrounding Grok’s responses, Musk has called it “the smartest AI in the world,” and xAI continues to invest heavily in model training and infrastructure.