According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.

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.