SpaceX to invest $2 billion in Elon Musk's AI startup xAI

SpaceX, the aerospace company founded by Elon Musk, has agreed to invest $2 billion in the magnate's artificial intelligence company xAI, The Wall Street Journal reported in recent hours.

Meanwhile, this would be the rocket manufacturer's first known investment in xAI and one of its largest in another company.

Artificial intelligence startup xAI is the creator of the controversial chatbot Grok and aims to match the popularity of rival OpenAI and its chatbot ChatGPT.

Earlier this year, xAI merged with Musk's social network, X, formerly known as Twitter; the merger valued the company at $113 billion.

The investment in SpaceX is part of xAI's $5 billion capital raising announced by Morgan Stanley last month, according to the newspaper.

Responding to a post on X about whether Tesla might also invest in xAI, Musk said Sunday: "That would be fantastic, but it's subject to board and shareholder approval."

In the post, Musk neither confirmed nor denied The Wall Street Journal's exclusive about SpaceX's investment in xAI.

On Tuesday, the chatbot Grok posted racist and controversial comments in response to X users.

For his part, Musk this week called Grok "the smartest artificial intelligence in the world."

"Grok is coming to Tesla vehicles very soon, next week at the latest," Musk said on his official X account on Thursday, after the presentation of the fourth version of Grok.