In a familiar critique of corporate structures, Musk also weighed in on the ideal environment for fostering such long-term, existentially focused AI. He declared, “For long-term optimization, it is better to be a private than a public company, as the latter is punished for long-term optimization beyond the reward cycle of stock portfolio managers.”

The company that controls the full stack – from chips to applications to distribution – may ultimately win the AI race.” So states AInvest in its keen observation of the high-stakes arithmetic supporting SpaceX’s record-breaking $2 billion investment in xAI,

Elon Musk's SpaceX has invested $2 billion in xAI. This move integrates AI deeper into Musk's ecosystem. xAI merged with X, valuing the company at $11

The startup is leaning on Musk’s business empire to play catch-up in the AI race.

Investments into xAI would help Grok better compete with OpenAI's ChatGPT by increasing capital toward research and development.