SpaceX to pour Rs 16800 crore into Elon Musk’s AI venture xAI, boosting valuation to Rs...

Elon Musk’s rocket company SpaceX has reportedly invested USD 2 billion into his artificial intelligence firm xAI, according to a report by the Wall Street Journal. This investment is part of a larger USD5 billion equity round, which increases the value of the newly merged company (xAI and Musk’s social media platform X) to an estimated USD 113 billion.

This big funding move shows how Musk is bringing together his different companies, SpaceX, Tesla, xAI, and X (formerly Twitter), to work more closely in the field of AI. According to the report, xAI's chatbot Grok is now being used to provide customer support for Starlink, SpaceX’s satellite internet service. There are also plans to use Grok in Tesla’s Optimus robots in the future.

When a user on X asked if Tesla might also invest in xAI, Musk replied, “It would be great, but subject to board and shareholder approval.” However, he did not confirm or deny the report about SpaceX’s USD 2 billion investment.

So far, SpaceX, xAI, and Tesla have not officially responded to requests for comments, and Reuters has not been able to independently confirm the Wall Street Journal’s claims.

Despite some recent backlash over Grok’s replies, Musk has called it “the smartest AI in the world.” xAI is still spending heavily on developing its technology and building the infrastructure needed to keep up with competitors like OpenAI.