SpaceX Invests $2 Billion in xAI Amidst Competitive AI Landscape

SpaceX has allocated a substantial $2 billion to xAI, adding depth to an existing $5 billion equity round and further intertwining Elon Musk's technological pursuits. The Wall Street Journal highlighted this strategic move on Saturday, positioning xAI to better compete with the formidable OpenAI.

This hefty investment comes in the wake of xAI's merger with X, valuing the unified entity at $113 billion. Moreover, the Grok chatbot, a key component of this merger, is now actively enhancing Starlink support and is poised for use in Tesla's Optimus robots, according to the report. In a recent exchange on X, Elon Musk noted the prospect of Tesla investing in xAI, underscoring that such a decision would require board and shareholder approval.

As of now, SpaceX, xAI, and Tesla have refrained from public comment, and Reuters has yet to confirm the Wall Street Journal's findings. Despite some recent criticism directed at Grok's performance, Musk has endorsed it as "the smartest AI in the world," while xAI maintains significant investment in developing its technological infrastructure and model training.

(With inputs from agencies.)