Elon Musk’s aerospace giant SpaceX has invested a staggering $2 billion in his artificial intelligence venture xAI, marking a significant step in Musk’s quest to advance AI technology. This investment is part of xAI’s ambitious $5 billion equity fundraising initiative, as reported by insiders familiar with the deal.
This move represents SpaceX’s first known investment in xAI and stands as one of its largest investments in another company. The collaboration underscores Musk’s strategy of leveraging his diverse business empire to bolster the AI startup in its race to catch up with industry leaders like OpenAI, the creators of ChatGPT.
Earlier this year, Musk integrated xAI into his social media platform X (formerly known as Twitter), merging the AI research lab with the platform to enhance the capabilities of Grok, xAI’s cutting-edge artificial intelligence system. The merger valued the new entity at an impressive $113 billion.
Musk has dubbed Grok \”the smartest AI in the world.\” The AI powers customer support features for SpaceX’s satellite internet service, Starlink, enhancing user experience with advanced AI-driven assistance. During the recent release of AI chatbot Grok 4, Musk unveiled plans to integrate Grok into humanoid robots, including Tesla’s Optimus fleet, signaling a bold leap into robotics.
Representatives for Musk indicated that more business partnerships between SpaceX and xAI are on the horizon, hinting at a future of deeper collaboration between the companies. This investment not only strengthens xAI’s position in the competitive AI landscape but also reflects Musk’s commitment to pushing the boundaries of technology across multiple industries.
