On the 12th, the Wall Street Journal (WSJ) reported that SpaceX has decided to invest $2 billion (2.8 trillion won) in Elon Musk's artificial intelligence (AI) startup, xAI. SpaceX is also run by Musk.
This is part of the equity fundraising announced by Morgan Stanley last month, accounting for 40% of the total amount of $5 billion (6.9 trillion won). This is the first time it has been revealed that SpaceX plans to invest in xAI.
Musk has been utilizing resources from his other enterprises to grow xAI. In March of this year, he announced that xAI had acquired the social media platform X, valuing X at $33 billion (45 trillion won) and xAI at $80 billion (110 trillion won).
Musk has frequently mobilized SpaceX to support his other enterprises. He borrowed $20 million (28 billion won) from SpaceX personally to fund the early stages of Tesla and used SpaceX's equipment when founding the tunnel drilling company 'The Boring Company.'
Before acquiring Twitter, the predecessor of X, in October 2022, Musk personally borrowed $1 billion (1.4 trillion won) from SpaceX, which he paid back the following month after the acquisition was completed.
However, the WSJ analyzed that SpaceX's investment in xAI could pose risks to SpaceX. Although SpaceX's revenue has surged in recent years, the development of the 'Starship' rocket is delayed due to successive failures in test flights and a major explosion during an engine test last month.
The WSJ noted that xAI, recognized for its high company value, spends billions of dollars annually on training AI models, and this cash pressure is similar for competing AI companies.
The WSJ reported, citing an investor, that xAI has raised $5 billion (6.9 trillion won) in liabilities along with the equity fundraising and is expected to secure more funds within this year.