Elon Musk's Biggest Investment in Another Company
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SpaceX to invest $2 billion in XAI
Elon Musk’s rocket company SpaceX is investing $2 billion in his artificial intelligence (AI) company XAI, the Wall Street Journal reported on Saturday, citing people familiar with the company.
The investment comes as part of a $5 billion equity fund announced by Morgan Stanley last month. It is SpaceX’s first known investment in XAI and Musk’s largest investment in another company.
Musk has repeatedly used his business empire to promote AI operations. His XAI company competes with OpenAI (maker of ChatGPT), which is considered a leader in AI research and deployment.
Earlier this year, Musk pushed ahead with efforts to expand Grok’s reach by integrating AI research lab XAI into social media platform X. The combination values the new company at $113 billion, the report said.
Musk has called Grok the “world’s smartest AI.” It also powers customer-support features for SpaceX’s satellite internet service, Starlink. During Wednesday’s release of the AI chatbot Grok 4, Musk also hinted at embedding Grok in “humanoid robots” like Tesla’s “Optimus fleet.”
Musk’s representatives have said that there will be more commercial partnerships between SpaceX and XAI in the future.
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