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5h ago

Musk Bolsters xAI With SpaceX Funding, Tesla Vote and Pentagon Contract

SpaceX’s funding, Tesla’s upcoming equity vote, a fresh Pentagon contract push Grok toward becoming the central AI across Musk’s ventures and federal agencies

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Elon Musk leaves a meeting with House Republicans in the basement of the U.S. Capitol building on March 5, 2025 in Washington, DC. Musk is meeting with Republicans in Congress today to discuss some of the dramatic cuts made, and ones yet to be made, across government agencies by the Department of Government Efficiency (DOGE).

Overview

  • SpaceX has committed $2 billion to xAI’s $5 billion equity round, linking Musk’s space and AI ambitions more closely.
  • Tesla will put a proposal to shareholders on whether to invest in xAI after Musk said he supports the deal but left the decision to investors.
  • Musk explicitly rejected a full merger between Tesla and xAI, distinguishing equity backing from corporate integration.
  • xAI’s Grok chatbot is already powering SpaceX’s Starlink customer support, is beta-tested in Tesla vehicles and is slated for Optimus robot trials.
  • xAI secured up to $200 million in a U.S. Department of Defense contract for its Grok for Government suite, marking its federal debut.