Musk challenges OpenAi, SpaceX invests two billion in xAI

SpaceX's investment is part of xAI's $5 billion capital raising announced by Morgan Stanley last month. It is the rocket manufacturer's first known investment in xAI and one of the largest in another company.

Since leaving his role in the Trump administration, challenging him with the creation of a third party (America Party), Musk has focused on training the latest version of Grok.

The richest man on the planet has called it 'the world's smartest artificial intelligence', although the chatbot it powers has not achieved the same success as OpenAI's ChatGPT.

Grok recently posted racist and controversial comments in response to X users, including an appreciation of Hitler. xAI apologised "profusely for the horrible behaviour that many have suffered", adding that it has investigated and taken steps to resolve the problem.

Grok already powers the customer support capabilities for SpaceX's satellite internet service, Starlink. Musk's representatives said that further commercial partnerships between SpaceX and xAI are likely in the future.

During the launch of Grok 4 this week, Musk said he also wanted to integrate Grok into humanoid robots, such as Tesla's Optimus fleet. SpaceX's investment in xAI, according to the WSJ, could represent a risk for Musk's space company.

SpaceX's revenues have soared in recent years, but the company is investing billions to develop a new rocket called Starship. The experimental vehicle is delayed and has suffered several setbacks this year, including three consecutive in-flight failures and a serious explosion during an engine test last month.