Key Takeaways
1. SpaceX has invested $2 billion in AI startup xAI, representing a significant portion of the company’s recent fundraising efforts.
2. The merger of xAI with X has increased its total value to $113 billion, with more fundraising rounds expected by year-end.
3. Elon Musk is integrating xAI’s technology across his companies, including real-time support in X and updates for Tesla vehicles.
4. The latest version of xAI’s product, Grok 4, is being recognized as highly advanced.
5. Tesla may consider investing excess funds into xAI, pending approval from its board and shareholders.
The richest person in the world, Elon Musk, often shifts technologies and skills between his various companies. The CEO of multiple firms is now said to be doing the same with money as SpaceX completes its biggest external investment in AI startup xAI.
Major Investment in xAI
SpaceX has purchased a $2 billion share in xAI, as first disclosed by The Wall Street Journal. This investment represents roughly 40 percent of the $5 billion that Morgan Stanley helped raise for the AI company a few weeks back.
The new capital arrives after xAI combined with X, boosting the total worth of the merged company to $113 billion. More rounds of fundraising are anticipated before the end of the year.
Integration of AI Across Companies
Musk has been integrating xAI’s technologies into his other ventures. Grok is now part of X and is able to answer questions in real-time. This AI also manages customer support for SpaceX’s Starlink satellite internet service. Tesla cars are in the middle of receiving Grok (beta) as part of their latest software updates. Furthermore, Musk has mentioned that the Optimus robot will utilize Grok.
SpaceX’s previous investments include the $524 million spent to buy Swarm Technologies back in 2021. Long before that, Musk allocated $20 million from SpaceX to assist Tesla in its early challenges.
Latest Developments and Future Prospects
Recently, xAI launched Grok 4, and this latest version of the AI has been hailed as the most intelligent in the world.
Musk also mentioned that Tesla might invest some of its excess funds into xAI through a post on X. Nevertheless, he made it clear that any future investment from the electric vehicle company would need to be approved by both the board and shareholders.
Source:
Link