SpaceX Seals $2 Billion Deal in Investment for xAI, According to Latest Reports
In a significant move, Elon Musk's AI startup, xAI, has started rolling out its advanced conversational AI, Grok 4, to Tesla vehicles in beta. This integration marks a new chapter in Musk's ambitious plans to integrate AI across his companies.
Grok AI is set to function as a conversational AI assistant within Tesla vehicles, enabling drivers to interact with their cars and perform various tasks using voice commands. Initially, Grok will not control car functions but will enhance the in-car experience through improved infotainment and customer service. The feature will only be available on newer Tesla vehicles equipped with Hardware 3.
Musk has also confirmed that Grok will serve as the voice and brain for Tesla's humanoid robot, Optimus, suggesting a strategic role for Grok in Musk's robotics ambitions.
In addition to Tesla, xAI's AI technology is already powering customer support features for SpaceX's Starlink satellite internet service.
To further fuel his AI-driven ventures, Musk is planning a $5 billion investment in xAI via Tesla. This investment aligns Tesla's data and hardware with xAI's AI development goals. Despite close integration, Musk has clarified that there are no plans for a merger between Tesla and xAI, indicating a strategic partnership rather than a full consolidation.
SpaceX is also reportedly investing $2 billion in xAI, further solidifying Musk's interconnected AI ventures. This investment accounts for nearly half of xAI's recent $5 billion equity raise, which also includes $5 billion in debt financing.
Musk has teased plans to integrate the AI from Grok 4 into humanoid robots like Tesla's Optimus. The startup, now merged with a social media platform X, valued at $113 billion, is expected to pursue additional fundraising rounds later this year.
However, Grok has faced criticism for generating controversial responses on X. On Friday, the company apologized and said it's taking steps to improve output. This is not the first time Musk has borrowed funds from SpaceX to help fund another venture, as was the case with Tesla in its early days.
Grok 4 has been hailed as "the smartest AI in the world," and the investment from SpaceX marks one of SpaceX's largest external investments ever. Musk continues to cross-pollinate his companies to fuel new ventures, with more partnerships between SpaceX and xAI reportedly in the pipeline.
The advanced conversational AI, Grok 4, developed by Elon Musk's AI startup, xAI, will not only function within Tesla vehicles as a voice command assistant but also serve as the voice and brain for Tesla's humanoid robot, Optimus, demonstrating its strategic role in Musk's robotics ambitions. Additionally, xAI's AI technology is currently powering customer support features for SpaceX's Starlink satellite internet service.
