The investment comes after xAI’s merger with X and places the combined entity’s valuation at $113 billion. xAI’s Grok chatbot is now being used for Starlink customer support and may be integrated into Tesla’s Optimus robots in the future.

Although Grok has faced criticism over some of its responses, Musk continues to promote it as “the smartest AI in the world.” Meanwhile, xAI remains focused on major investments in model development and infrastructure.

SpaceX has committed $2 billion to xAI as part of a $5 billion equity round, deepening the ties between tech billionaire Elon Musk’s ventures as his artificial intelligence startup races to compete with rival OpenAI, the Wall Street Journal reported on Saturday.

The investment follows xAI’s merger with X and values the combined company at $113 billion, with the Grok chatbot now powering Starlink support and eyed for future integration into Tesla’s Optimus robots, the report added.

SpaceX and xAI did not immediately respond to Reuters’ requests for comment.

Despite recent controversies involving Grok’s responses, Musk has called it “the smartest AI in the world,” and xAI continues to spend heavily on model training and infrastructure.

The investment follows xAI’s merger with X and values the combined company at $113 billion, with the Grok chatbot now powering Starlink support and eyed for future integration into Tesla’s Optimus robots, the report added.

In response to a post on X about whether Tesla could also invest in xAI, Elon Musk said on Sunday, “It would be great, but subject to board and shareholder approval,” without confirming or denying the Journal report on SpaceX’s investment plans in xAI.

SpaceX, xAI and Tesla did not immediately respond to requests for comment. Reuters could not immediately confirm the WSJ report.

Despite recent controversies involving Grok’s responses, Musk has called it “the smartest AI in the world,” and xAI continues to spend heavily on model training and infrastructure.