SpaceX is investing $2 billion into Elon Musk’s artificial intelligence startup, xAI, almost half of the $5 billion the company just raised through an equity

SpaceX has committed $2 billion to xAI as part of a $5 billion equity round, deepening the ties between tech billionaire Elon Musk's ventures as his artificial intelligence startup races to compete with rival OpenAI,

Elon Musk's plans to ship an overseas power plant to Memphis for an xAI supercomputer raise both interest and environmental concerns.

Elon Musk's AI venture, xAI, has lost one of its top engineering leaders to rival AI heavyweight OpenAI. Uday Ruddarraju, who played a pivotal role in building the core infrastructure of Musk's xAI, confirmed his exit recently.

SpaceX is planning to invest $2 billion in Elon Musk's xAI as part of a $5 billion equity round, the Wall Street Journal reported on Saturday. The news of the investment comes after xAI's merger with Musk's social media company X. The outlet reported that the merged company is valued at about $113 billion.

AI raised $10 billion through loans and cash investments in July, split evenly between debt and equity. In June it sold $300 million worth of shares in a secondary stock offering.

Elon Musk's xAI said Grok's behavior was due to an update that caused it to prioritize engagement, even if posts contained "controversial opinions."