Tycoon Elon Musk and his firm SpaceX have engaged in discussions with Saudi Arabia’s Public Investment Fund (PIF) regarding the fund’s prospective procurement of a cornerstone equity position, valued at approximately $5 billion, in the space corporation’s initial public offering, according to two individuals acquainted with the matter.
The investment will, in part, sidestep the dilution of PIF’s current holding in SpaceX, which is marginally less than 1%, the sources indicated. The rocket manufacturer is proactively enlisting cornerstone investors in anticipation of its IPO, three additional sources revealed. The enterprise intends to secure a landmark $75 billion, substantially surpassing prior major IPOs, such as Saudi Aramco in 2019 and Alibaba in 2014.
SpaceX is endeavoring to ascertain investor appetite for an agreement of such unprecedented magnitude, the sources stated, speaking under the veil of anonymity due to the confidential nature of the deliberations. A conclusive determination has not yet been reached, and the stipulations of the investment are subject to modification, they emphasized.
SpaceX issued no response to a request for commentary. PIF also refrained from commenting.
Cornerstone investors represent institutional purchasers who customarily pledge to acquire a predetermined stake in advance of an IPO roadshow, thereby showcasing confidence and bolstering demand for the offering. While SpaceX is drawing in substantial cornerstone investors, a noteworthy proportion of the shares are anticipated to be allocated to affluent clients of the underwriting banks, as previously reported by Reuters.
PIF fortified its connections with Musk's commercial conglomerate in November 2025 when his AI venture HUMAIN and xAI proclaimed a collaboration to implement 500 megawatts of data center capability within Saudi Arabia. PIF subsequently channeled $3 billion via HUMAIN before consolidating xAI with the social platform X in March 2025.
SpaceX, headquartered in Starbase, Texas, recently lodged private IPO documents with the U.S. Securities and Exchange Commission (SEC) and intends to transition to public trading later in the current year.
Source: Reuters