Elon Musk pressures SpaceX IPO partners to spend on X, xAI

Elon Musk is reportedly pushing potential investors in SpaceX to spend money on his other ventures, including advertising on X (formerly Twitter) and subscribing to AI tools from xAI.

According to The New York Times, Musk has told banks, law firms and advisers involved in SpaceX’s anticipated initial public offering (IPO) that being paying customers of X and xAI could improve their standing in securing roles tied to the deal.

Several financial institutions have already agreed to spend tens of millions of dollars on xAI’s Grok chatbot and are integrating the technology into their internal systems, the report said, citing people familiar with the matter.

Major firms expected to work on the IPO include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley, along with law firms Gibson Dunn and Davis Polk.

The SpaceX IPO is expected to be one of the largest ever, with Reuters reporting that the company is targeting a valuation of more than $2 trillion.

Beyond its dominance in satellite communications, SpaceX is pitching future-facing projects such as orbital data centres for artificial intelligence (AI) and potential collaborations on humanoid robotics tied to Tesla.

Musk has also outlined ambitious long-term plans, including building a self-sustaining lunar base within the next decade and eventually enabling human travel to Mars.

However, analysts note that such timelines have historically been optimistic.

The strategy could provide a boost to X, which has faced ongoing questions about advertising revenue and platform performance since Musk’s takeover.

As a private company, X does not disclose detailed financial metrics, though its integration into Musk’s broader ecosystem may increasingly tie its fortunes to ventures like SpaceX and xAI.