SpaceX to invest $2 billion in xAI
Elon Musk’s aerospace giant SpaceX is set to invest $2 billion in his artificial intelligence venture, xAI, marking one of the largest internal cross-investments in his tech empire. The investment will account for nearly half of xAI’s ongoing $5 billion equity fundraising round, positioning the startup to compete with major players like OpenAI, Google DeepMind, and Meta.
The investment expresses Musk’s ambition to deeply embed AI into his current set of companies. xAI, which merged operations with X (previously Twitter) recently, is already working on Grok, a chatbot conversational AI that is already deployed in Starlink’s customer support program. The AI might be at the center of energizing Tesla’s Optimus humanoid robots in the near future, expanding Musk’s AI presence in social media, space communications, and robotics.
The investment bolsters Musk’s vision of building a vertically integrated, closed-loop AI ecosystem. With xAI now worth approximately $113 billion with X, the move highlights his intentions to build proprietary models, diminish dependence on third-party suppliers, and introduce AI into every touchpoint of his business.
While the size of the investment provokes concerns regarding resource planning and governance—particularly given that Tesla shareholders will soon be voting on a potential xAI stake—the strategic purpose is evident: consolidate AI innovation under the banner of Musk.
With xAI pushing ahead with research and infrastructure, this ambitious $2 billion injection from SpaceX is bound to propel it down the road of becoming a power to be reckoned with in the AI world.
