SpaceX Considers $2 Billion Investment in Elon Musk's xAI Venture
📷 Image source: techcrunch.com
Elon Musk’s aerospace company, SpaceX, is reportedly in discussions to invest up to $2 billion into xAI, the tech billionaire’s artificial intelligence startup. The potential funding, first reported by TechCrunch, signals deepening ties between Musk’s sprawling business empire and his ambitions in the AI sector. Founded in 2023, xAI has positioned itself as a competitor to OpenAI, focusing on developing AI systems that Musk claims will prioritize 'truth-seeking' and safety. The company recently launched Grok, an AI chatbot integrated into Musk’s social media platform X (formerly Twitter). Sources suggest the investment could help xAI accelerate its research and infrastructure development, particularly in high-performance computing. SpaceX’s involvement may also hint at synergies between AI and aerospace, such as optimizing satellite data processing or autonomous spaceflight systems. Industry analysts note that while intra-company investments are unusual, Musk has a history of cross-pollinating resources between his ventures—Tesla, for instance, has previously supplied battery technology to SpaceX. Regulatory scrutiny, however, could arise given the scale of the proposed transaction. Additional reporting by Reuters indicates that xAI is separately negotiating with other investors to raise up to $6 billion, potentially valuing the startup at $20 billion. The AI arms race has seen massive capital inflows, with rivals like Anthropic and OpenAI securing multibillion-dollar funding rounds in recent months.
