xAI is an American artificial intelligence company founded by 📝Elon Musk in March 2023 and best known for 📝Grok, its chatbot and family of large language models. Since February 2026 it has been a wholly owned subsidiary of 📝SpaceX, and in July 2026 it rebranded as SpaceXAI.
Musk launched xAI with eleven researchers drawn from 📝OpenAI, 📝Google DeepMind, and other labs, and released the first Grok model in November 2023. In March 2025 xAI acquired 📝X (Twitter) in an all-stock deal that valued xAI at $80 billion and X at $33 billion, making X's data and distribution part of the same company. SpaceX acquired xAI on February 2, 2026 at a $250 billion valuation — the largest acquisition of a private company on record — and xAI's products were folded into SpaceX as an AI division, which went public with SpaceX in June 2026. In April 2026 SpaceX executive Michael Nicolls became xAI's president; he reportedly told staff the near-term goal was to match 📝Anthropic's 📝Claude. Most of xAI's original co-founders have since left.
Models
xAI's models span the Grok language family, coding models, and image, video, and voice models; every release is indexed in the 📝Grok Model Glossary. Status as of September 28, 2026:
- Grok 4.7 — released September 21, 2026: the current flagship, with a 500K-token context window at $2 / $6 per million tokens.
- Grok 4 series — from Grok 4 (July 2025) through Grok 4.1, 4.20, 4.3, 4.5, and 4.6, with fast and multi-agent variants.
- Coding — Grok Code Fast 1 (August 2025) and grok-build-0.1, the model behind the Grok Build coding agent.
- Media — the Aurora image model (December 2024), Grok Imagine image and video models, and Grok voice models.
- Open-weight — Grok-1 (March 2024) and Grok 2.5 (August 2025) weights, published on Hugging Face.
Products
- 📝Grok — xAI's chatbot, available on X, the web, and mobile apps, with SuperGrok and X Premium subscription tiers.
- Grok Build — a terminal-based coding agent for professional software engineering.
- Grok Imagine — image and video generation inside the Grok apps, launched in mid-2025.
- Grokipedia — an AI-generated online encyclopedia launched October 27, 2025.
- 📝Cursor — the AI code editor, acquired by SpaceX for $60 billion in a deal that closed August 14, 2026.
Structure and Infrastructure
- Ownership — a wholly owned subsidiary of SpaceX since February 2, 2026, operating as SpaceXAI alongside X.
- Colossus — xAI's supercomputer in Memphis, Tennessee, built in 122 days and operational since late 2024, since expanded toward nearly 2 gigawatts; its gas turbines drew a 2026 lawsuit from the NAACP and other groups over air permits.
- Government — a Department of Defense AI contract worth up to $200 million, announced July 2025.
Controversies
- July 2025 — after an update, Grok posted antisemitic content on X and referred to itself as "MechaHitler"; xAI removed the posts and changed Grok's instructions.
- May 2025 — Grok inserted claims about "white genocide" in South Africa into unrelated replies, which xAI attributed to an unauthorized system-prompt change.
- Late 2025–2026 — Grok's image tools were used to generate nonconsensual sexualized images, including of minors, prompting investigations, lawsuits, and xAI's restriction of image editing to paid users in March 2026.
Scale
- Funding before SpaceX: $6 billion at a $24 billion valuation (May 2024), $6 billion at $50 billion (December 2024), and debt and equity at more than $120 billion (July 2025), with investors including 📝Sequoia Capital, Andreessen Horowitz, Fidelity, and BlackRock.
- Acquisition value: $250 billion, as part of a combined SpaceX–xAI valued at $1.25 trillion in February 2026.
- 2025 financials: about $3.2 billion in revenue and a $6.4 billion operating loss, as reported.
Sources: CNBC on the SpaceX merger, Bloomberg on Cursor, [Wikipedia](https://en.wikipedia.org/wiki/XAI_(company)).