SpaceX Commits $2 Billion to Elon Musk's AI Startup xAI, Tying Ventures Closer Than Ever

The move values the merged xAI and X entity at $113 billion.

Summary
  • Musk hinted that Tesla may invest too—pending board and shareholder approval.
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Elon Musk is drawing the threads of his empire even tighter; according to a Wall Street Journal report, SpaceX—his rocket company—is pouring $2 billion into his AI venture xAI; the deal is part of a broader $5 billion fundraising round that now values xAI and Musk's social media platform X, formerly Twitter, at a jaw-dropping $113 billion.

The bet is bold; but so is the vision. Musk isn't just throwing money around—he's stitching together a multi-industry ecosystem where rockets, robots, and reasoning machines converge. Grok, the chatbot developed by xAI, is already handling support requests for Starlink, SpaceX's satellite internet service; and next up, it could help power Tesla's Optimus humanoid robots.

Musk added more intrigue when he responded to a post on X about whether Tesla (TSLA, Financials) might invest in xAI as well; his reply: “It would be great, but subject to board and shareholder approval.” He didn't confirm the WSJ story outright—but he didn't deny it either.

Despite some eyebrow-raising moments involving Grok's responses, Musk continues to call it “the smartest AI in the world”; he's doubled down on spending, pushing hard on both training infrastructure and model scale. As OpenAI dominates headlines with ChatGPT, Musk seems determined to build a rival that's smarter, faster—and fully in-house.

No official comment yet from SpaceX, Tesla, or xAI; and Reuters says it hasn't been able to independently verify the WSJ report. Still, the direction of travel is clear: Musk wants to own the future—and he's willing to spend billions of his own companies' money to do it.

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