SpaceX Backs Elon Musk’s xAI with $2 Billion Investment, Says WSJ

In a significant show of support for Elon Musk’s growing AI empire, SpaceX is investing $2 billion into xAI, his artificial intelligence startup, according to a Wall Street Journal report released Saturday.

The investment forms part of a $5 billion equity round, pushing the valuation of the combined entity, post-merger with Musk’s social media platform X, to an estimated $113 billion.

The report also highlights Grok, xAI’s flagship chatbot, as a central pillar of integration across Musk’s business ventures. It is now powering customer support for Starlink, SpaceX’s satellite internet service, and is being considered for future deployment in Tesla’s Optimus humanoid robots.

Despite criticism over Grok’s controversial replies, Musk continues to stand by the product, calling it “the smartest AI in the world.” Behind the scenes, xAI is ramping up investment in training, infrastructure, and model improvement to maintain momentum in the competitive AI landscape.

Responding to speculation on X (formerly Twitter) about whether Tesla could also invest in xAI, Musk stated, “It would be great, but subject to board and shareholder approval.”

While this neither confirms nor denies the Journal’s report, it does suggest future crossover may be on the table, pending internal governance decisions.

No Official Confirmation Yet

So far, SpaceX, xAI, and Tesla have not issued formal comments. Reuters noted that it could not independently verify the Wall Street Journal’s report at the time of publication.

Nonetheless, the $2 billion commitment, if confirmed, would signal a deepening of ties among Musk’s ventures as xAI continues its rapid rise to challenge major players like OpenAI in the booming artificial intelligence race.

This reported move not only boosts xAI’s financial footing but also signals Musk’s intent to weave AI deeply into his technological ecosystem, from rockets and robots to social platforms. As xAI’s ambitions grow, so too does the spotlight on how Musk’s companies will intertwine AI innovation with real-world applications.