SpaceX has announced an investment of $2 billion in xAI, Elon Musk’s artificial intelligence startup. This funding is part of a larger $5 billion equity round aimed at positioning xAI as a competitive force against established players like OpenAI. According to a report by the Wall Street Journal, this investment follows xAI’s recent merger with X, valuing the combined entity at approximately $113 billion.
The integration of the Grok chatbot has already begun, enhancing customer support for Starlink and potentially paving the way for future applications in Tesla’s Optimus robots. Musk has previously highlighted Grok’s capabilities, referring to it as “the smartest AI in the world.” Despite facing controversies regarding some of its responses, xAI continues to invest heavily in training and infrastructure.
In a recent interaction on X, Musk hinted at the possibility of Tesla making a similar investment in xAI, stating it “would be great, but subject to board and shareholder approval.” This statement did not confirm or deny the Wall Street Journal‘s report on SpaceX’s investment plans but indicates Musk’s ongoing interest in bolstering his AI ventures.
Requests for comments from SpaceX, xAI, and Tesla went unanswered, and Reuters has not independently verified the details of the investment. The financial backing from SpaceX marks a significant step for xAI as it seeks to enhance its technological capabilities while navigating a competitive landscape in the AI sector.
As xAI continues to develop its offerings, the implications of this investment could be far-reaching, potentially influencing advancements in AI technology and its applications across various industries.
