Investors familiar with the matter told The Wall Street Journal that the rocket company SpaceX has agreed to invest a whopping $2 billion in xAI, the Musk-led firm behind the controversial large language model Grok. This investment makes up almost half of the $5 billion of equity that the AI company raised last month.

The money behind Elon Musk’s trillion-dollar empire is increasingly flowing in one direction: toward artificial intelligence.

Elon Musk’s artificial intelligence start-up xAI said its models are now available to federal agencies. The DOD said it awarded $200 million contracts to xAI as well as Google, Anthropic and OpenAI.