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.

The Department of Defense under Secretary Pete Hegseth has been fixated on buzzwords like “warfighting” and “warfighters,” and adopting new AI tools is part of that mission, according to leaders at the agency. And Monday’s press release was filled to the brim with similarly grandiose language.

Just days ago, xAI had to briefly suspend the AI tool because users found it was giving Nazi-friendly answers to questions like praising dictator Adolf Hitler and blaming Jews for various global

OpenAI, Alphabet's Google, Anthropic and Elon Musk's AI firm xAI have won contracts of up to $200 million each, aimed at scaling up adoption of advanced AI capabilities in the U.S. Department of Defense,