SpaceX will spend $2 billion in Musk’s xAI company according to the WSJ

The Wall Street Journal said on Saturday that SpaceX has invested $2 billion in xAI as part of a $5 billion equity transaction, strengthening the connections between tech tycoon Elon Musk’s businesses as his AI startup competes with rival OpenAI.

The investment comes after xAI and X merged, and the new business is valued at $113 billion, according to the report. The Grok chatbot currently powers Starlink assistance and is being considered for future integration into Tesla’s Optimus robots.

Requests for response from Reuters were not immediately answered by SpaceX or xAI.

Musk has referred to Grok’s responses as “the smartest AI in the world,” notwithstanding the issues surrounding them. xAI is still heavily investing in infrastructure and model training.