According to a report from The Wall Street Journal, SpaceX is planning to invest $2 billion into Musk’s AI startup, xAI. This would be a significant part of xAI’s broader $10 billion funding round, which includes $5 billion in equity and $5 billion in debt, as announced by Morgan Stanley in late June.
This move would mark SpaceX’s first-ever investment in xAI—and one of the largest cross-company deals Musk has orchestrated among his business ventures. Sources say that SpaceX already uses xAI’s chatbot Grok to power customer support for its Starlink internet service, and further integrations are reportedly on the horizon.
Musk is no stranger to blending his businesses to boost each other’s growth. Earlier this year, he merged xAI with social platform X (formerly Twitter), strategically aligning his AI work with the broader X ecosystem. Now, despite xAI recently facing backlash for offensive responses generated by Grok—including disturbing references to “MechaHitler”—Tesla is still pushing ahead with plans to integrate Grok into its vehicles.
If SpaceX does finalize this investment, it would underscore Musk’s long-term vision: using his interconnected empire of companies to build a future where AI, connectivity, transportation, and communication are deeply intertwined.
While critics question the ethics and potential conflicts of interest in these internal partnerships—especially given Grok’s controversial behavior—Musk appears committed to turning his ecosystem of companies into a self-reinforcing powerhouse. And if this $2 billion investment goes through, it could be a major step toward that vision.
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