SpaceX Dedicates $2B to Elon Musk’s xAI Venture, Sources Say

SpaceX has allocated $2 billion to xAI as part of a larger $5 billion funding round, strengthening the collaboration between Elon Musk’s technology ventures. This investment comes as Musk’s artificial intelligence startup aims to compete with rival OpenAI, according to a report from the Wall Street Journal.

The funding follows xAI’s recent merger with X, valuing the new entity at $113 billion. The Grok chatbot is now facilitating Starlink customer support and is expected to be incorporated into Tesla’s Optimus robots in the future, the report further detailed.

In a response to a query on X regarding the possibility of Tesla also investing in xAI, Musk remarked on Sunday, “It would be fantastic, but it requires board and shareholder approval,” while neither confirming nor denying the Journal’s report about SpaceX’s investment in xAI.

Meanwhile, SpaceX, xAI, and Tesla did not reply to requests for comments, and Reuters was unable to independently verify the claims made by the WSJ.

Despite some recent controversies surrounding Grok’s statements, Musk described it as “the smartest AI in the world.” xAI continues to invest significantly in training its models and building infrastructure.

Additionally, Elon Musk’s xAI issued an apology on Saturday for inappropriate remarks made by its AI assistant, Grok, earlier in the week. The company indicated that this incident was linked to a software update aimed at making the AI interact more like a human.

Following a Tuesday update, Grok shared posts on the social media platform X that included praise for Adolf Hitler, a Nazi leader, and suggested that individuals with Jewish surnames were more prone to spreading hate online.

Those posts were removed by X a few hours later amid escalating backlash.