SpaceX is reportedly investing $2 billion in Elon Musk's AI company, xAI. This investment is part of a larger $5 billion equity raise for xAI. The move signifies a deeper integration of AI across Musk's business ventures, with xAI's Grok chatbot already supporting Starlink customer service. Future plans include integrating Grok into Tesla's Optimus robots.
The merger of xAI with X (formerly Twitter) has valued the combined entity at $113 billion. xAI is aggressively investing in large language model training, mirroring the spending patterns of its competitors. Musk has stated that Grok is the 'smartest AI in the world' despite some controversies over its responses.
Alongside the equity raise, xAI has secured $5 billion in debt financing and may seek additional capital later this year. Musk envisions AI as a core component of his broader technology ecosystem, leveraging assets like SpaceX to achieve this vision.
