Elon Musk’s SpaceX has agreed to invest $2 billion in his artificial intelligence firm xAI, representing nearly half of the recent capital raised by the Grok chatbot developer. The Wall Street Journal reports this development, citing investors close to both companies.
Musk has repeatedly leveraged his business empire to accelerate growth at the AI startup, which aims to compete with industry leader OpenAI. Earlier this year, he merged xAI with social media platform X, integrating the formerly compact research lab with a digital network that amplifies the reach of its Grok chatbot.
The merger established the combined entity’s valuation at $113 billion. SpaceX’s investment forms part of xAI’s $5 billion funding round announced by Morgan Stanley last month. This marks the rocket manufacturer’s first publicly disclosed investment in xAI and ranks among its largest external corporate investments to date.