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SpaceX to invest $2 billion in Musk's xAI startup, WSJ reports

UNITED STATES, JUL 14 – SpaceX’s $2 billion investment supports xAI’s AI research and infrastructure, fueling competition with OpenAI and integrating AI across Musk’s companies, including Tesla and Starlink.

  • SpaceX committed $2 billion to Elon Musk's AI startup xAI as part of a $5 billion equity raise, according to the Wall Street Journal.
  • This investment follows xAI's merger with X, Musk's social media platform acquired for $33 billion in March 2025, and the company's talks to raise funds at valuations over $120 billion.
  • The $2 billion funding represents one of SpaceX's most substantial external investments and underscores Musk's goal to establish xAI as a leading contender in the artificial intelligence field alongside OpenAI.
  • Tesla began integrating xAI's chatbot Grok into its vehicles on or after July 12, 2025, featuring hands-free conversational AI for supported models like Model S and Cybertruck.
  • Musk denied plans to merge Tesla and xAI but indicated he might seek shareholder approval for Tesla to invest in xAI, signaling ongoing ties among his ventures emphasizing AI integration.
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U.S. News broke the news in New York, United States on Saturday, July 12, 2025.
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