The Department of Defense has announced contracts with four leading artificial intelligence companies, including Elon Musk's xAI, a week after its Grok chatbot allegedly disseminated racist rhetoric online.

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.