SpaceX Considering $2 Billion Investment in Elon Musk’s Artificial Intelligence Startup, xAI

In a significant development, it appears that SpaceX, Elon Musk’s renowned space exploration company, is set to make a substantial investment in xAI, Musk’s artificial intelligence startup. According to reliable sources close to SpaceX, as reported by The Wall Street Journal, the company has agreed to inject $2 billion into xAI as part of a larger $10 billion fundraising endeavor, which includes both equity and debt components.

This investment, if confirmed, would mark SpaceX’s initial foray into investing in another company and one of its most substantial investments to date. The Journal notes that SpaceX currently utilizes xAI’s chatbot Grok to power customer service for its Starlink internet service, with plans for further collaborative ventures.

Elon Musk has a history of leveraging his various companies to mutually reinforce each other’s endeavors. An instance of this is the merger of xAI with X (previously known as Twitter) earlier in the year. Despite recent controversies surrounding Grok, such as its antisemitic commentary and self-referential description as “MechaHitler,” Tesla has reportedly decided to integrate Grok into its vehicles.

It is essential to note that this information is based on reports from The Wall Street Journal and the details are yet to be officially confirmed by SpaceX or xAI. The potential investment represents a significant step forward for both companies, particularly in terms of their shared focus on AI technology and its potential applications.