SpaceX has invested $2 billion in xAI as part of an ongoing $5 billion funding round, the Wall Street Journal reported. This is yet another move by Elon Musk tightening ties between his companies, particularly those operating in space, artificial intelligence and social media.
Following its merger with platform X (formerly Twitter), xAI is developing its position as a strategic pillar of Musk’s empire. The combined company’s valuation has reached $113 billion, and its flagship product, the Grok chatbot, is already being integrated into Starlink’s services and will eventually partner with the Optimus humanoid robot being developed by Tesla.
Although Musk firmly rejected the idea of a merger between Tesla and xAI, he did not rule out a potential investment by the electric vehicle manufacturer in the AI startup. However, he caveated that the decision would depend on the approval of Tesla’s board and shareholders. Such a scenario could mean further expanding the synergies between Musk’s projects – from electric cars to satellites to artificial intelligence.
xAI is investing heavily in infrastructure development and training its own language models to compete with OpenAI and Anthropic. Despite the controversy surrounding some of Grok’s statements, Musk remains convinced of its technological superiority.
From the market’s point of view, SpaceX’s investment is not only an injection of capital, but also a signal that Musk wants to control the key links of AI development on his own terms. With rivals such as OpenAI working closely with Microsoft, Musk is building a parallel ecosystem based on autonomy, full ownership of the technology and integration with existing infrastructure (like Starlink).
xAI is still in talks with investors – according to earlier reports from Reuters, the startup was considering raising capital at a valuation as high as $200 billion. The current round may therefore only be a precursor to the next big valuation jump.
At this stage, Musk’s strategy seems clear: it is not just about developing AI, but about building a unified technology platform combining networks, hardware, software and communications. And $2 billion is just another step in this puzzle for Musk.
