Elon Musk's SpaceX will invest $2 billion in his artificial intelligence venture xAI, according to a Wall Street Journal report citing investors familiar with the deal. The move marks SpaceX's largest known external investment and signals deepening ties between Musk's aerospace and AI ambitions.
The funding forms part of xAI's $5 billion equity raise, first reported by Morgan Stanley in April. Musk has increasingly leveraged resources across his companies to advance xAI's Grok AI system, which he claims surpasses competitors like OpenAI's ChatGPT. Grok currently powers customer service for SpaceX's Starlink satellite internet and could soon be integrated into Tesla's Optimus humanoid robots.
Analysts note the investment follows xAI's recent merger with social media platform X, creating a combined entity valued at $113 billion. 'This isn't just about funding—it's about building an ecosystem where AI, space tech, and consumer platforms reinforce each other,' said a tech industry strategist quoted in the report.
With Musk pledging further collaborations between SpaceX and xAI, the deal underscores how private capital is reshaping global AI development. For Asian markets, where AI adoption is accelerating, such moves could influence investment patterns and cross-border tech partnerships.
