Elon Musk has taken the significant step of requiring banks and advisors working on SpaceX’s planned IPO to subscribe to Grok. This comes as SpaceX boosts its target IPO valuation to over $2 trillion, potentially making it the largest stock market listing in history. The company aims to raise $75 billion, a figure that would dwarf previous “mega-IPOs” such as Saudi Aramco ($25.6 billion) and Alibaba ($25 billion).
In line with reports, Elon Musk is requiring banks and advisors on the deal to purchase subscriptions to Grok, his AI chatbot. Major financial institutions including Morgan Stanley, Goldman Sachs, JPMorgan, Bank of America, and Citigroup are serving as the lead banks. As reported by Bloomberg, the Starbase, Texas-headquartered rocket maker boosted its target initial public offering valuation above $2 trillion, while setting the stage for what could become the largest stock market listing on record.
Regarding financial commitment, some banks have already agreed to spend tens of millions of dollars annually on Grok and are currently integrating the AI into their internal IT systems. As several news outlets have reported, SpaceX, Elon Musk, and the majority of the involved banks have declined to comment or have not yet responded to inquiries.
The NY Times noted that during a major IPO, “banks find ways to integrate themselves with the company going public, as well as its chief executive. It is pertinent to note that SpaceX offering may end up being the biggest IPO of all time. The IPO is expected to raise more than $50 billion at a valuation above $1 trillion, which means the banks could generate fees. For context, Musk was recently awarded a new pay package worth $1 trillion over the next decade if Tesla hits an $8.5 trillion market capitalization to meet its targets.
