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.

Elon Musk's xAI, which features a large language model that has spewed Hitler-supporting rhetoric and antisemitic tropes, said Monday it has signed a deal to provide its services to the US Department of Defense.

The company unveiled "Grok for Government," a suite that allowed U.S. agencies to adopt its chatbot and artificial intelligence products.