© OTKnetwork/X/Fari Use Elon Musk's space company SpaceX has decided to invest significant money in his other company, xAI, which deals with the development of artificial intelligence. Investors close to the situation confirmed to the Wall Street Journal that SpaceX will invest two billion dollars in this startup. This sum represents almost half of the total capital raised by xAI in the last round of financing, which aims to raise a total of five billion dollars. ADVERTISEMENT For some time now, Musk has used the resources and power of his business empire to help grow xAI, which aims to catch up with the market leader, OpenAI. Last year, his AI project merged with social network X (formerly Twitter), giving his Grok chatbot a powerful platform to spread. Previously, SpaceX was a source of financial support for Musk's other ventures. For example, Tesla received a loan of 20 million dollars from SpaceX, and the same company was the financial lever for the establishment of The Boring Company. Also, Musk used $1 billion from SpaceX to buy Twitter. Development risks and challenges Although SpaceX is successful and revenues are growing, the investment in xAI comes at an awkward time. The company is investing huge sums in the development of the Starship rocket, which, unfortunately, is late in delivery and has suffered several unsuccessful tests. We recently witnessed three partially unsuccessful flights and a large explosion during static engine testing. ADVERTISEMENT According to available information, SpaceX currently has over three billion dollars in cash, but rarely invests in external projects. In contrast, xAI spends billions on training AI models and is constantly under pressure to secure additional funding. In addition to these two billion from SpaceX, xAI also raised five billion dollars in loans and according to the announcements of investors, they will soon be looking for additional investments. This investment represents a challenge, but also an opportunity for Musk and his companies in the race for dominance in the world of artificial intelligence. SHARE