SpaceX to invest $2 billion in Elon Musk's xAI amid growing cross-venture integration

Elon Musk’s SpaceX is set to invest $2 billion in his artificial intelligence startup xAI, as part of a broader $5 billion equity round, according to a report by The Wall Street Journal. The deal would mark SpaceX’s first investment in xAI and significantly deepen the financial and operational ties between Musk’s business ventures.

The investment reportedly comes alongside an additional $5 billion in debt financing, with Morgan Stanley said to be advising on the fundraising. The combined valuation of xAI, following its earlier merger with Musk’s social media platform X (formerly Twitter), now stands at $113 billion.

xAI’s Grok chatbot has already been integrated into SpaceX’s Starlink customer service system, and further applications are in the pipeline, including potential use in Tesla’s humanoid Optimus robots. Tesla is also considering investing in xAI, though Musk has noted any such move would be “subject to board and shareholder approval.”

The collaboration across Musk’s companies reflects his longstanding strategy of interlinking resources and technologies, from X to Tesla to SpaceX. Despite recent controversy over Grok’s responses, including incidents involving antisemitic content, Musk has defended the bot, calling it “the smartest AI in the world.” xAI continues to invest heavily in training infrastructure as it seeks to compete with OpenAI and other leading AI players.