SpaceX bets future on AI, rivals Big Tech

SpaceX is positioning its artificial intelligence business as the core of its future, projecting a massive $26.5 trillion market opportunity in its IPO filing. The company has acquired xAI, integrating its Grok AI models into its operations. However, Grok has significantly lagged behind competitors like OpenAI's ChatGPT and Anthropic's Claude in both consumer and enterprise adoption. Despite launching new business-focused products, Grok has faced challenges, including limited government use and a past scandal involving inappropriate image generation. SpaceX acknowledges these risks, including potential reputational harm and regulatory scrutiny, as it aims to compete with established AI giants.