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 company told workers to download employee tracking software on their personal computers, prompting privacy concerns from some staff.

Elon Musk’s company xAI apologized after Grok posted hate speech and extremist content, blaming a code update and pledging new safeguards to prevent future incidents.

People who pay for access to SuperGrok can now try the AI chatbot’s new “Companions” avatars, xAI owner Elon Musk announced Monday morning. The companions available currently include Ani, an anime avatar, and Rudy, a cartoony red panda.

Billionaire investor Chamath Palihapitiya sparked speculations regarding a potential megamerger between Elon Musk's biggest ventures, xAI, SpaceX, and, of course, Tesla Inc. (NASDAQ: TSLA).

Per the Wall Street Journal, the investment by SpaceX is part of a $5 billion equity fundraise by Morgan Stanley for xAI. Earlier, xAI was merged with X (formerly Twitter), combining the entity's value at $133 billion. With the aerospace firm's investment, the company's shares will only rally, boosting the confidence of the investors.

AI’s chatbot spiraled into chaos after trying to sound more human. The fix reveals just how fragile truth-seeking AI really is.