SpaceX has committed $2 billion to xAI, Elon Musk’s artificial intelligence startup, as part of a broader equity round totaling $5 billion. This investment aims to enhance xAI’s position in the competitive landscape dominated by firms like OpenAI, according to a report by the Wall Street Journal.
The funding follows the recent merger of xAI with another Musk venture, X, valuing the combined entity at approximately $113 billion. The report highlights that the Grok chatbot is now integral to supporting Starlink services and is anticipated for future integration into Tesla’s Optimus robots.
In response to inquiries about potential investments from Tesla into xAI, Musk indicated on social media that such a move “would be great,” although he noted it would be contingent on board and shareholder approval. Musk did not confirm or deny the details of the Wall Street Journal report regarding SpaceX’s investment plans.
Requests for comment from SpaceX, xAI, and Tesla went unanswered, and Reuters was unable to verify the report at this time. Despite facing scrutiny over the Grok chatbot’s responses, Musk has referred to it as “the smartest AI in the world.” He emphasized that xAI continues to aggressively invest in model training and infrastructure development to support its growth.
The substantial investment from SpaceX underscores Musk’s commitment to advancing artificial intelligence technology. As xAI positions itself against established players like OpenAI, the integration of its technology into Musk’s existing platforms could significantly reshape the AI landscape. With ongoing developments, the potential for xAI to innovate and expand its capabilities will be closely watched by industry observers and competitors alike.
