Elon Musk's SpaceX Commits $2 Billion To xAI

SpaceX has invested $2 billion in Elon Musk’s AI venture xAI, according to The Wall Street Journal.  The investment makes up nearly half of the company's recent $5 billion equity round. The investment marks SpaceX’s first capital infusion into xAI and one of its largest into another firm, reinforcing Musk’s trend of integrating his companies. After merging with X, xAI reached a $113 billion valuation and now utilizes its Grok chatbot to support Starlink customer service, with plans to integrate it into Tesla’s Optimus robots. Musk claims Grok is “the smartest AI in the world,” although it lags behind OpenAI’s ChatGPT in adoption. Grok faced backlash over antisemitic content, leading to post removals, software fixes, and a pledge to ban hate speech. The Journal reports Musk’s companies are likely to deepen cross-collaboration as xAI scales its ambitions and spending across AI and real-world applications.