SpaceX has pledged $2 billion to xAI, Elon Musk’s artificial intelligence startup, as part of a $5 billion equity fundraising effort, according to The Wall Street Journal.
This investment marks SpaceX’s first known financial stake in xAI and one of its largest in another company.
The move strengthens ties between Musk’s ventures, aiming to position xAI as a formidable competitor to AI industry leader OpenAI.
Earlier this year, Musk merged xAI with X, combining the AI research lab with the social media platform to amplify the reach of xAI’s Grok chatbot.
The merger valued the combined entity at $113 billion, reflecting significant investor confidence in Musk’s AI vision.
Grok now powers customer support for SpaceX’s Starlink satellite internet service and is slated for potential integration into Tesla’s Optimus humanoid robots, signaling deeper collaboration across Musk’s empire.
Musk has described Grok as “the smartest AI in the world,” a claim made during the recent launch of Grok 4.
The investment and merger reflect Musk’s strategy to leverage his business portfolio to accelerate xAI’s growth and technological advancements.
Future partnerships between SpaceX and xAI are likely, with Musk’s representatives indicating more collaborations to come, according to The Wall Street Journal.
Neither SpaceX nor xAI responded to requests for comment on the investment.