SpaceX has agreed to invest $2 billion in Elon Musk 's artificial intelligence company xAI. The investment makes up nearly half of the company's recent $5 billion equity round, according to investors cited by The Wall Street Journal.

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.

Investors familiar with the matter told The Wall Street Journal that the rocket company SpaceX has agreed to invest a whopping $2 billion in xAI, the Musk-led firm behind the controversial large language model Grok. This investment makes up almost half of the $5 billion of equity that the AI company raised last month.

The money behind Elon Musk’s trillion-dollar empire is increasingly flowing in one direction: toward artificial intelligence.

Elon Musk once explained that he turns ambitious ideas into reality by starting with low-cost software ventures, using first principles thinking, and combining insights across industries—even without major funding.

Elon Musk said a year ago that AI has no use at SpaceX. Now he's willing to pay $170k a head for AI engineers. Elon Musk's SpaceX is recruiting AI software engineers and promising them six-figure salaries.

Of all the threats that President Donald Trump and Elon Musk hurled at one another as their alliance fell apart, those targeting Musk’s contracts with the US government have the potential to do the most damage.

AI safety researchers from OpenAI, Anthropic, and nonprofit organizations are speaking out publicly against the “reckless” and “completely irresponsible” safety culture at xAI, the billion-dollar AI startup owned by Elon Musk. The criticisms follow weeks of scandals at xAI that have overshadowed the company’s technological advances.