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.