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SpaceX pumps US$2b into Elon Musk’s xAI, valuing merged firm at US$113b as Grok powers Starlink and eyes Tesla integration
A SpaceX facility is seen ahead of the SpaceX Starship Flight 8 launch at Boca Chica beach on March 03, 2025 in Boca Chica Beach, Texas. — AFP pic

BENGALURU, July 13 — SpaceX has committed US$2 billion to xAI as part of a US$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 yesterday.

The investment follows xAI’s merger with X and values the combined company at US$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.

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