Investment in AI Company Xai by SpaceX

Kevin O’Leary, the chairman of O’Leary Ventures, recently addressed various topics, including Zohran Mamdani’s win in the NYC mayoral race, the connection between President Donald Trump and Elon Musk, and the significance of policies emerging from the “big beautiful bill” alongside the TikTok issue.

SpaceX has reportedly invested $2 billion in Xai, Elon Musk’s AI venture. These investments, initially mentioned by the Wall Street Journal, indicate a strengthening relationship among Musk’s businesses such as SpaceX, Tesla, and the social media platform X, according to sources familiar with the situation.

Musk has consistently pushed for his company to enhance his AI startup. He announced that Tesla will begin integrating Grok AI chatbots into its vehicles starting next week.

Earlier in the year, Musk facilitated a merger between Xai and X, expanding Grok Chatbot’s capabilities. This collaboration values the new entity at around $113 billion. The upgraded Grok Chatbot is generating buzz for its improved support for Starlink and its prospective use in Tesla’s Optimus Robots.

This commitment from SpaceX is aimed at positioning Musk’s AI startup against competitors like OpenAI, as startups often invest heavily in model development and their infrastructure.

On a recent Sunday, Musk discussed whether Tesla might also consider investing in Xai during an online post. “It’s a good idea, but it needs the board and the shareholders’ approval,” Musk mentioned.

While Musk refers to Grok Chatbot as “the smartest AI in the world,” it has faced criticism following an incident where Xai issued an apology for using inappropriate language during an update.

Linda Yaccarino has stepped down as CEO of Musk’s social media platform, X.

In response to the chatbot incident, Xai stated, “I sincerely apologize for the distressing incidents experienced by users. Our goal with @grok is to deliver accurate and useful responses. Investigations revealed that a software update caused the issue, which is distinct from the core functionality of @grok.”