Musk Bolsters AI Ventures with $2 Billion SpaceX Investment in xAI

In a bold move to advance artificial intelligence, SpaceX has committed $2 billion to xAI, Elon Musk’s AI startup, as part of a $5 billion equity financing round, according to The Wall Street Journal. The investment signals deeper collaboration among Musk’s tech empire, including SpaceX, Tesla, and the social platform X.

xAI’s flagship chatbot, Grok, is set to power Tesla’s vehicles and will be integrated into the company’s Optimus robot, enhancing their AI-driven capabilities. Following xAI’s merger with X, Reuters reports the combined entity is now valued at $113 billion. Grok also supports SpaceX’s Starlink satellite network, further intertwining Musk’s ventures.

Neither SpaceX nor xAI responded to requests for comment from Reuters.

Despite recent scrutiny over Grok’s AI-generated content, Musk has hailed it as “the world’s smartest AI.” xAI continues to pour resources into model development and infrastructure to maintain its competitive edge in the AI race.

 

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