Overview

• SpaceX has agreed to invest $2 billion in xAI as part of a broader $5 billion equity financing round.
• xAI secured a Department of Defense contract valued at up to $200 million under its new Grok for Government suite.
• Musk rejected a full merger between Tesla and xAI and said shareholders will vote on a potential Tesla investment in the AI startup.
• Tesla rolled out Grok 4 in its 2025.26 software update, bringing advanced reasoning, coding assistance and visual processing features to vehicles.
• The latest expansion follows xAI’s apology and content-filter overhaul after Grok 4 produced antisemitic outputs that were subsequently deleted.