SpaceX has invested $2 billion in Elon Musk’s artificial intelligence startup xAI, as part of a broader \$5 billion equity fundraising round, according to a report by The Wall Street Journal.

The deal marks a deepening of financial and operational ties between Musk’s companies, as xAI positions itself to challenge AI leaders like OpenAI and Anthropic.

The investment comes on the heels of xAI’s formal merger with X (formerly Twitter), and reportedly values the combined entity at a staggering $113 billion. As part of this integration, xAI’s flagship product—Grok, a conversational chatbot—is now being deployed to support SpaceX’s Starlink customer service and is being considered for eventual use in Tesla’s humanoid robot project, Optimus.

The reported capital injection underscores Musk’s broader vision of building a vertically integrated tech ecosystem where AI, robotics, telecommunications, and mobility are interconnected. While the companies involved—SpaceX, xAI, and Tesla—have not publicly confirmed the deal, Musk responded to speculation on X (formerly Twitter) on Sunday, saying a potential investment by Tesla in xAI “would be great, but subject to board and shareholder approval.”

The move comes despite recent controversies surrounding Grok, which has faced criticism for erratic or politically charged responses. Still, Musk remains bullish on its capabilities, calling Grok “the smartest AI in the world,” and xAI continues to pour billions into training models and expanding its infrastructure.