Elon Musk’s SpaceX might invest $2 billion in Musk’s xAI
Elon Musk speaks during a town hall in Green Bay, Wisconsin on March 30, 2025. An election to choose a new supreme court judge in the northern US state of Wisconsin wouldn't usually make much noise. But when the world's richest man took an interest in the race, people began to notice, and protests on March 30 drew crowds. Tech baron and political provocateur Elon Musk, a close ally of President Donald Trump, has poured money into the Tuesday election, hoping to secure a conservative win. (Photo by Robin LEGRAND / AFP) (Photo by ROBIN LEGRAND/AFP via Getty Images) | Image Credits:ROBIN LEGRAND/AFP / Getty Images One Elon Musk business might be making a big investment in another.
According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.
This would be SpaceX’s first investment in xAI, and one of its biggest investments in another company. The WSJ says SpaceX already uses xAI’s chatbot Grok to power customer service for its Starlink internet service, with plans for more partnerships.
Musk has not been shy about using his various companies to support each other, for example merging xAI with X (formerly Twitter) earlier this year. And despite xAI’s recent apology for Grok’s antisemitic comments (including posts where the chatbot described itself as “MechaHitler”), Tesla is bringing Grok to its vehicles.
