Elon Musk Seeks SpaceX IPO Banks to Acquire Grok AI Subscriptions: NYT Reveals

SpaceX's IPO: Banks Face Unusual Condition to Secure Deal

Elon Musk is imposing strict requirements on banks and other advisers working on SpaceX's planned initial public offering (IPO). According to a report by the New York Times, citing people familiar with the matter, Musk is asking these banks to purchase subscriptions to Grok, his artificial intelligence chatbot.

The report states that some banks have agreed to spend tens of millions of dollars a year on the chatbot and have begun integrating it into their IT systems. This unusual condition has raised eyebrows in the financial industry, as banks typically do not have to meet such requirements to participate in high-profile deals.

The list of active bookrunners, or lead banks managing the deal, includes some of the largest financial institutions in the world. These banks are Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup, as reported by Reuters earlier this week. Meanwhile, JPMorgan Chase, Goldman Sachs, Citigroup, and Bank of America declined to comment on the report, while Morgan Stanley did not immediately respond to Reuters' queries.

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

SpaceX, the Texas-headquartered rocket maker, has set its sights on a record-breaking IPO. According to a Bloomberg News report from a day earlier, the company has boosted its target initial public offering valuation above $2 trillion. This would set the stage for what could become the largest stock market listing on record.

In a significant move, SpaceX aims to raise a record $75 billion, surpassing previous mega-IPOs such as Saudi Aramco in 2019 and Alibaba in 2014. This unprecedented fundraising effort would cement SpaceX's position as one of the largest and most valuable companies in the world.

Note: The table compares the valuation of SpaceX's projected IPO with two previous mega-IPOs.

Read also: SMR Jewels IPO Successfully Lists with Institutional Support