The investment from SpaceX is part of xAI’s $5 billion equity fundraising effort, which was announced by Morgan Stanley last month.

According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.

Elon Musk’s rocket and satellite Internet company SpaceX plans to invest in his generative AI business xAI. The Wall Street Journal reports that SpaceX will pump $2 billion into the Grok company, as part of a broader $5bn round. SpaceX previously loaned money to Tesla and helped fund his acquisition of social media platform X.