Billionaire Elon Musk’s SpaceX has held discussions with Saudi Arabia’s Public Investment Fund about the PIF potentially taking an anchor stake of around $5 billion in the space company’s IPO, according to a Reuters report.
The investment would partly prevent dilution of PIF’s existing stake of just under 1% in SpaceX, the sources said.
The rocket maker has been lining up anchor investors well ahead of its stock market debut, three other sources said. The company aims to raise a record-breaking $75 billion, which would dwarf previous mega-IPOs such as Saudi Aramco in 2019 and Alibaba in 2014. SpaceX has submitted confidential IPO paperwork with the SEC and is targeting a market launch later this year.
Why Is Saudi Arabia Interested in Investing in SpaceX?
Saudi Arabia’s PIF already has a strategic interest in Musk’s business empire. In February 2026, PIF-owned AI company HUMAIN invested $3 billion in xAI’s Series E round shortly before xAI was acquired by SpaceX. That investment converted into SpaceX equity through the transaction, giving HUMAIN exposure to the combined space-AI entity.
The $5 billion anchor investment under discussion would strengthen this current partnership. As part of its Vision 2030 diversification strategy, PIF has been actively promoting Saudi Arabia as a key hub in the global AI ecosystem in an effort to lessen its reliance on oil revenue.
How Much Is SpaceX Seeking to Raise?
SpaceX aims to raise approximately $75 billion in what would be the largest public offering in history, surpassing Saudi Aramco’s $29 billion debut in 2019. The company is targeting a valuation of more than $1.75 trillion after merging with Musk’s artificial intelligence startup xAI in February.
The IPO is expected to launch as early as June, according to Bloomberg. SpaceX has confidentially submitted draft registration documents to the SEC, allowing regulators to review the company’s finances privately before they become public.
What Is an Anchor Investor?
Anchor investors are institutional buyers that usually commit to a set stake prior to an IPO roadshow. Their participation demonstrates trust in the offering and supports demand from other investors.
While SpaceX courts big-ticket anchor investors like PIF, a significant portion of the allocation is expected to go to wealthy investors served by the underwriting banks, Reuters reported previously. The company has selected Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley as senior underwriters for the IPO.
How Does the xAI Merger Factor Into the IPO?
In February 2026, SpaceX finalized a stock merger with Musk’s artificial intelligence business, xAI. The acquisition valued SpaceX at $1 trillion and xAI at $250 billion, resulting in a combined corporation worth $1.25 trillion. The valuation jump to $1.75 trillion for the IPO reflects expectations around the combined entity’s space and AI ambitions.
The merger represents Musk’s strategy to integrate AI with space exploration, aiming to build a vertically integrated innovation ecosystem spanning AI, space launch technology, and satellite internet. Proceeds from the IPO would help fund what the company described as an “insane flight rate” for its developmental Starship rocket, artificial intelligence data centers in space and a lunar base, according to an internal memo viewed by Bloomberg.
What Is the Status of the IPO Process?
SpaceX has confidentially submitted IPO paperwork with the SEC. A confidential filing allows a company to submit its draft registration to the SEC for regulatory review without immediate public disclosure. SpaceX will be required to release a public prospectus at least 15 days before its investor roadshow begins.
With a June target, the formal S-1 prospectus is expected to go public in April or early May. That document will be the first time investors see SpaceX’s full financials, including Starlink’s subscriber economics and the details of its xAI integration.
FAQs: SpaceX’s IPO
Q: How much is SpaceX seeking to raise?
A: The company aims to raise approximately $75 billion, which would surpass Saudi Aramco’s $29 billion IPO in 2019 as the largest in history.
Q: What is the targeted valuation?
A: SpaceX is targeting a valuation of more than $1.75 trillion.
Q: What is Saudi Arabia’s current stake in SpaceX?
A: PIF already holds just under 1% of SpaceX through its HUMAIN subsidiary, which invested $3 billion in xAI before its merger with SpaceX.
Q: When is the IPO expected to launch?
A: SpaceX is targeting a June 2026 launch, according to Bloomberg.
Q: Who is underwriting the IPO?
A: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley are the senior underwriters.
Q: How much could retail investors get?
A: SpaceX is considering allocating up to 30% of shares to retail investors-about $22.5 billion worth-roughly three times the typical Wall Street norm.
Disclaimer: This information is based on inputs from Reuters report. TSG does not independently confirm the information provided by the relevant sources.