đ Elon Bets Big: SpaceX Drops $2B on xAI as Grok AI Hits Tesla Dashboards
Elon Musk's empire just got smarterâand richer. SpaceX just funneled a cool $2 billion into xAI, turbocharging the Grok AI integration now live in Tesla vehicles.
Silicon Valley's New Power Couple
Forget moonshotsâthis is a brainshot. The move tightens the symbiotic loop between Musk's ventures: Tesla's cars become AI labs, SpaceX funds the code, and shareholders nod along like it's 2021 again.
Wall Street Rolls Its Eyes
Another day, another billion-dollar Musk meme. Analysts whisper 'vertical integration,' while short sellers add 'distraction' to their bingo cards. Meanwhile, Grok's neural nets are probably writing this sentence.
SpaceX puts $2B into xAI as Grok lands in Tesla vehicles
Since leaving his advisory role under U.S. President Donald Trump, Elon has been moving fast to pull his companies closer. One of the biggest steps was taken in March, when he merged xAI with social media platform X. That deal valued xAI at $80 billion, while X was tagged at $33 billion.
And the connections havenât stopped there. Just last week, Elon said Teslaâs vehicles will now feature Grok, the chatbot built by xAI. Grok has stirred up major backlash after it was caught generating antisemitic messages and even praising Adolf Hitler.
Following public outrage, xAI posted an apology on Saturday, admitting to what it called the âhorrific behaviorâ caused by the AI and claiming that fixes had been made to prevent it from happening again.
That same day, The Wall Street Journal reported that Elonâs aerospace company SpaceX has invested $2 billion into xAI. The money is part of a bigger $10 billion debt and equity raise that was first outlined by Morgan Stanley. The Journal said the information came from people with knowledge of the deal. When contacted, neither xAI nor SpaceX commented.
xAI is currently in the middle of an infrastructure sprint as it continues to train and improve Grok 4, its latest chatbot model. Elonâs company has described Grok as âthe worldâs smartest artificial intelligenceâ and âthe most intelligent AI to date.â That claim was evaluated by Artificial Analysis, which said Grok 4 was of âhigher quality compared to average.â
The new model is Core to xAIâs push to compete against both fresh AI startups and legacy firms already struggling under the high costs of training large models. Elonâs plan doesnât involve folding his companies into one another, but heâs making sure they all speak the same language. And whether that comes with shareholder approval or not, the financial links between Tesla, SpaceX, and xAI are growing by the day.
KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage