Elon Musk’s SpaceX is reportedly planning to invest $2 billion into his own artificial intelligence (AI) firm, xAI.
Musk has been mobilising his business empire to boost an AI firm, which is currently racing to outdo major players, including OpenAI, to solidify its position against established competitors in the AI landscape, as reported by The Wall Street Journal.
This investment comes as part of a broader $5 billion equity round that aims to expand xAI operations.
This deal reinforces the ties across the tech billionaire’s ventures and signals his great plan to incorporate cutting-edge AI technologies in different industries.
The fund infusion comes after xAI’s merger with X (formerly Twitter), which is currently operating xAI’s operations and has seen a growing role for its chatbot Grok.
Its valuation is $113 billion following the merger, and the combined entity is emerging as a heavyweight in the growing AI realm.
Grok, which is claimed to be “the smartest AI in the world,” is already being utilised to house Starlink customer support, and it is soon to be integrated into Tesla’s Optimus humanoid robots.
This significant move marks the first public investment SpaceX has made in xAI.
It is pertinent to mention that SpaceX has been focused on space and satellite technology, with several major investments beyond its main objectives.
