SpaceX Backs xAI With $2B Investment As Musk Pushes AI Growth Across His Companies

Elon Musk’s SpaceX has invested $2 billion in his AI company xAI, marking one of its largest outside investments to date, according to The Wall Street Journal. The investment is part of xAI’s $5 billion equity round and deepens financial ties across Musk’s ventures, following a merger between xAI and X that valued the company at $113 billion. Grok, xAI’s chatbot, now supports Starlink customer service, with more partnerships expected. Musk has called Grok “the smartest AI in the world,” though it recently drew backlash for offensive replies. Musk plans to embed Grok in Tesla’s Optimus robots and is spending billions on AI training, while xAI also raised $5 billion in debt. SpaceX’s move comes as it continues to invest heavily in Starship, which remains delayed following several failures.