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As Grok flounders, SpaceX bets future on beating Big Tech at AI

SpaceX has positioned AI as central to its future growth, claiming a potential $26.5 trillion market opportunity through its acquisition of xAI and the Grok AI models. However, the company faces significant challenges in competing with established AI players like OpenAI and Anthropic, with Musk himself acknowledging xAI's relatively small size in the AI landscape. The company's S-1 filing suggests its traditional space business will play a supporting role to its AI ambitions ahead of an expected IPO.

Background

SpaceX, founded by Elon Musk, is primarily known for its achievements in space technology and satellite internet services through Starlink. The company's acquisition of xAI and its Grok AI models represents a significant strategic shift toward artificial intelligence.

Source
Ars Technica
Published
May 22, 2026 at 05:51 AM
Score
7.0 / 10