SpaceX Invests $2 Billion In Sister Company xAI

SpaceX has agreed to invest $2 billion in xAI, the artificial intelligence startup founded by Elon Musk.

Musk has frequently leveraged SpaceX to support his other ventures. I Photo: SpaceX X

The investment represents a major portion of xAI’s $5 billion equity raise that Morgan Stanley announced last month, Fortune Tech's Andrew Nusca reported.

The news, first reported by The Wall Street Journal, comes as no surprise to Musk watchers. Musk owns both companies and has a long history of intertwining his ventures.

Earlier this year, he merged social media platform X with xAI in an effort to amplify use of its AI chatbot, Grok.

While this marks SpaceX’s first known investment in xAI, the two companies have collaborated previously. SpaceX’s Starlink satellite internet service already uses Grok for customer support.

Musk has frequently leveraged SpaceX to support his other ventures. He previously borrowed money from SpaceX to fund an early-stage Tesla, and has shared SpaceX assets with his tunneling startup, The Boring Company.