San Francisco | July 13, 2025 ⏱ Reading Time: 2.5 min
AI News Update Summary : In a bold move, Elon Musk has directed a fresh $2 billion investment from SpaceX into his AI company xAI. With deeper integration of Grok into X (formerly Twitter), the company’s valuation has now surged to an eye-popping $113 billion, raising eyebrows across the tech world.
What Just Happened?
According to internal reports, Elon Musk’s aerospace giant SpaceX has invested $2 billion into his AI venture xAI, signalling a new phase in Musk’s vision to unify artificial intelligence with social media, space systems, and hardware.
The funding is being channelled into three key areas:
- Expanding the capabilities of Grok, xAI’s chatbot
- Deeper integration of Grok into X (formerly Twitter)
- Building infrastructure to run xAI’s models on in-house chips
This move takes xAI’s current valuation to $113 billion, pushing it into the same league as OpenAI and Anthropic.
How Grok and X Are Becoming One System
Since early 2024, Grok has been powering advanced search and real-time commentary inside X. But now, Musk wants Grok to become a real-time AI layer across the entire X platform — from trending news summaries to DM suggestions and even auto-generated content for creators.
Early demos show Grok summarising tweets, detecting misinformation, and even suggesting smarter replies in live threads.
Why Is SpaceX Involved?
Musk’s long-term bet seems clear: merging AI with space, communication, and content platforms.
Insiders suggest that parts of xAI’s inference infrastructure could eventually run from satellite-connected systems, creating AI that works even in remote areas.
The investment may also give xAI access to SpaceX’s proprietary compute infrastructure, reducing dependence on Nvidia or AWS.
What This Means for the AI Industry
This move puts pressure on other players like OpenAI and Google to rethink their models — not just technically, but in terms of distribution.
While others build AI inside closed labs, Musk is deploying his in real-time public platforms.
And with X’s data, Grok has something others don’t: unfiltered, real-time public conversations.
Also Read:Google’s ₹20,000 Cr AI Move: Bengaluru Startup Now Inside Google Cloud
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