Elon Musk's SpaceX plans to invest $2 billion in AI startup xAI

Elon Musk's SpaceX plans to invest $2 billion in his artificial intelligence startup xAI, which merged with social platform X (formerly Twitter) earlier this year, the Wall Street Journal reported (via TechCrunch), citing sources among investors close to SpaceX.

The investment will be part of a larger $10 billion capital raise — $5 billion through equity and another $5 billion through debt — led by Morgan Stanley and announced in late June.

This will be SpaceX’s first funding for xAI, and one of its largest investments in a third-party entity. According to sources, SpaceX has already integrated the Grok chatbot developed by xAI into its Starlink customer service system. Further partnerships between the companies are expected.

By the way, the company xAI recently got into a scandal over the uncontrolled posts of the chatbot Grok, which led to an apology for its "horrible" behavior. Nevertheless, xAI continues to work on Grok and will soon launch it in Tesla cars.