SpaceX is investing $2 billion in xAI, Elon Musk’s artificial intelligence startup, according to a report from The Wall Street Journal. The funding is said to represent nearly half of xAI’s most recent equity raise and marks one of SpaceX’s largest investments in another company to date.
Sources close to both companies confirmed the deal, which underscores Musk’s strategy of using his businesses to support one another as he aims to position xAI as a strong competitor to OpenAI. Earlier this year, Musk merged xAI with his social media platform X, creating a combined entity valued at $113 billion.
Musk has recently focused his efforts on training and launching the latest version of Grok, xAI’s conversational chatbot. The newly released Grok 4 has been described by Musk as the smartest AI in existence, though he admits its potential also raises ethical concerns. He likened the AI to a “super-genius child” and stressed the need to instill it with values like truth and honor to ensure a positive impact on society. Despite expressing worry about the risks of advanced AI, Musk said he believes the outcome will “most likely” be good for humanity.
While the investment signals confidence in xAI’s future, it also introduces potential risks for SpaceX. The aerospace firm is already spending billions on developing its Starship rocket, which has experienced delays and technical challenges, including a recent explosion during an engine test.
In a broader AI context, the demand for AI-skilled workers continues to rise. Research from PYMNTS Intelligence found that all surveyed CFOs in June reported a growing need for analytical skills in their workforce—an increase from 60% in March 2024. The shift reflects more hands-on use of generative AI and a push to close capability gaps. Additionally, over a quarter of recent CFO job postings now require AI expertise, highlighting how AI is reshaping executive roles and business needs across industries.
With SpaceX’s backing, Musk’s xAI is gaining more momentum in the race to lead the next era of artificial intelligence.
