SpaceX will inject $3 billion into Elon Musk’s xAI, significantly boosting the startup’s efforts to compete with AI giants like OpenAI, according to a new report.
SpaceX Invest in xAI as Musk Expands AI Ambitions
Elon Musk’s artificial intelligence startup xAI is receiving a major financial boost from his aerospace company SpaceX, which has reportedly committed $3 billion (USD 2 billion) as part of a $5 billion equity funding round, the Wall Street Journal reports.
The funding round values the newly merged entity of xAI and X at $113 billion. The funds will accelerate development of Grok, xAI’s chatbot, which has recently been integrated into Starlink support systems and is being considered for use in Tesla’s Optimus humanoid robots.
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Musk : Tesla Could Join Investment, But Needs Board Approval
When asked on X whether Tesla might also invest in xAI, Musk responded:
“It would be great, but subject to board and shareholder approval.”
While he neither confirmed nor denied the SpaceX deal, sources say the funds are critical to scaling Grok’s infrastructure and training efforts.
Despite controversy surrounding Grok’s sometimes polarizing answers, Musk claims it is “the smartest AI in the world.” xAI continues to invest aggressively in supercomputing and large language model development to keep pace with rivals like OpenAI and Anthropic.
Neither SpaceX, xAI, Tesla, nor Musk have issued official comments on the report, and Reuters has not independently verified the details.
