SpaceX is investing $2 billion into Elon Musk’s artificial intelligence startup, xAI, which is one of the company’s largest-ever financial commitments to another firm.
The investment in xAI is part of a broader $5 billion equity raise, with xAI recently being merged with Musk’s social media platform, X, to form a combined entity valued at $113 billion.
Musk has mobilized several of his companies to support xAI’s growth, with xAI’s AI technology already being integrated into SpaceX’s Starlink internet service and Tesla vehicles.
The investment underscores Musk’s ambition to position xAI as a major competitor in the AI industry, with the recent launch of Grok 4 receiving positive reviews for being a powerful AI technology.