The tech billionaire, Elon Musk has indicated that it could mark an end of xAI. He said future AI products will come under SpaceX. It is likely that the AI startup co-founded by Elon Musk in 2023 will merge with SpaceX.
Responding on X to a post about SpaceX’s recent compute deal with Anthropic he wrote, “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX.”
The shift comes in the wake of SpaceX’s recent compute partnership with Anthropic.
Founded in 2023, xAI was launched with Musk’s vision of building a “pro-humanity” and “truth-seeking” AI. The company introduced several versions of Grok AI model and was positioned as a challenger to OpenAI, a company Musk helped establish in 2015 before leaving in 2018.
Grok became known for being less politically r correct compared to other rival AI models. However, it also faced scrutiny late last year after some users on X misused the chatbot to generate inappropriate content involving other users.
Despite its ambitions, xAI has remained behind rivals such as Anthropic, OpenAI, and Google in the AI race.
Earlier this year, Elon Musk announced that xAI would merge with SpaceX as part of a broader vision that includes building data centres in space. Musk is also reportedly exploring a potential $1.5 trillion IPO for SpaceX.
Since the merger announcement, Musk has said he is rebuilding the AI business and expanding hiring, including bringing in candidates who previously had not even secured interviews.
However, it is likely that Musk wants to bring all AI products under the SpaceX umbrella for a simpler approach. SpaceX already has some of the world’s most powerful supercomputers in Colossus 1 – now leased to Anthropic – and Colossus 2. With plans of venturing into orbital data centres, and one of the largest IPOs in history, a streamlined SpaceX may be the better option for Musk.
