Elon Musk said on Monday that he has no intention of combining Tesla with his artificial intelligence company xAI, after a Tesla investor on X asked if they’d support a merger between the two. Elon gave a one-word answer: “No.

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.

Elon Musk's xAI announced Monday it secured a $200 million ceiling contract with the U.S. Department of Defense. The big picture: The move is a part of the Pentagon's adoption of advanced artificial intelligence capabilities to address national security challenges.

If it succeeds, it could push its value as high as $200 billion, 10 times its valuation from early last year, according to sources in the know.  The fundraising is still being discussed and could start next month,