SpaceX Invests $2 Billion in xAI to Compete with OpenAI?

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SpaceX has invested $2 billion in xAI as part of a $5 billion equity funding round.


The xAI firm was founded by Elon Musk in 2023, focusing on artificial intelligence (AI), social media and technology.


The Wall Street Journal reported that the effort is aimed at strengthening ties between Elon Musk's technology companies as his new AI company becomes a challenger to OpenAI.


The investment follows the merger between xAI and X, valuing the combined company at $113 billion.


The Grok chatbot is currently used for Starlink customer support and is planned for future integration into Tesla's Optimus robot.


When asked about Tesla's involvement in the xAI investment, Elon Musk, without confirming or denying, said the decision depends on the approval of the company's board and shareholders.