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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 has committed $2 billion to Elon Musk’s AI startup xAI, contributing to a larger $5 billion equity fundraising effort led by Morgan Stanley that was revealed last month.
  • This investment follows xAI's merger with Musk's social media company X in March, which valued xAI at $80 billion and X at $33 billion, combining to $113 billion.
  • Tesla began integrating xAI's chatbot Grok into its vehicles starting July 12, 2025, promoting conversational AI features like Storyteller and Unhinged personalities in select models.
  • Musk described Grok 4 as the "world's smartest artificial intelligence" and said Tesla might invest in xAI, subject to board and shareholder approval, while opposing a Tesla-xAI merger.
  • The SpaceX investment highlights Musk's strategy to interconnect his ventures around AI, but Tesla's ongoing shareholder vote on investing in xAI reflects questions over their future relationship.
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U.S. News broke the news in New York, United States on Saturday, July 12, 2025.
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