SpaceX is gearing up for Starship's tenth test flight in early August, as confirmed by Elon Musk on July 14, 2025. Despite a recent upper-stage explos

Elon Musk has taken a big step towards integrating all his businesses into an AI-based future. According to news agency Reuters, Musk's space company SpaceX has invested $2 billion in his AI startup xAI.

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.

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

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.

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.

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.