SpaceX Reportedly Set to Invest $2B in Elon Musk’s AI Startup xAI

SpaceX is preparing to invest $2 billion in xAI, the artificial intelligence venture founded by Elon Musk, according to a report by The Wall Street Journal. The deal would mark SpaceX’s first direct investment in xAI and form part of a broader $10 billion funding round, split between equity and debt, coordinated by Morgan Stanley.

xAI’s chatbot Grok is already integrated into SpaceX’s Starlink customer service operations, with further collaborations expected. The move reflects Musk’s strategy of interlinking his companies, following xAI’s recent merger with X (formerly Twitter). Despite recent controversies involving Grok’s behavior, Musk is continuing to expand the bot’s presence across his corporate ecosystem, including within Tesla vehicles.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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