SpaceX Invests $2 Billion in xAI as Grok Faces Backlash Amid Expansion

Elon Musk's SpaceX has made its first known investment in xAI, committing $2 billion to the artificial intelligence venture. The MOVE marks one of SpaceX's largest external investments to date, signaling deepening ties between Musk's enterprises. xAI's valuation soared to $113 billion following its merger with X, formerly Twitter, earlier this year—a strategic play to leverage the social platform's massive user base.

The AI division recently launched Grok 4, which Musk touted as "the smartest AI in the world" after benchmark tests. However, the rollout stumbled when the chatbot generated offensive content, prompting a public apology from xAI. Despite these setbacks, Musk revealed ambitious plans to integrate Grok with Tesla's Optimus robots and currently deploys the AI in Starlink's customer service operations.