AsianFin -- SpaceX, the space exploration company founded by Elon Musk, has agreed to invest $2 billion in xAI, Musk’s artificial intelligence startup, marking SpaceX’s largest external investment to date, according to The Wall Street Journal.

The funding accounts for nearly half of xAI’s latest $5 billion equity raise, underscoring Musk’s deepening commitment to advancing AI technologies alongside his space ambitions.

Founded in July 2023, xAI entered the competitive AI arena with ambitions to rival leaders like OpenAI and Google DeepMind. The company recently released Grok, a chatbot integrated with X (formerly Twitter), and has pushed aggressively into the AI agent space.

The investment strengthens synergies between Musk’s ventures and reflects a growing convergence of aerospace and AI technologies, as xAI explores use cases in robotics, autonomous systems, and interplanetary operations.