Sources reveal that SpaceX, owned by billionaire Elon Musk, is in talks with the Saudi Public Investment Fund regarding a potential $5 billion investment in its IPO. This investment aims to mitigate the impact of the fund's current stake, which is less than 1% in SpaceX.
SpaceX is seeking to attract key investors ahead of its IPO, aiming to raise a record $75 billion, which would surpass previous offerings such as Saudi Aramco in 2019 and Alibaba in 2014.
Details of the Talks
Reports indicate that the discussions are still in their early stages, and no final decision has been made yet, meaning any investment could change. SpaceX did not respond to requests for comment, while the Public Investment Fund declined to comment on the matter.
Key investors are typically institutional buyers who commit to a fixed stake before the public offering begins, reflecting confidence and helping to support demand for the offering. While SpaceX seeks to attract large investors, a significant portion of the allocation is expected to go to wealthy investors served by participating banks.
Background & Context
The relationship between the Public Investment Fund and Musk's business empire deepened in November 2025, when his AI company HUMAIN and xAI announced a collaboration to deploy 500 megawatts of data center capacity in Saudi Arabia. The fund also invested $3 billion through HUMAIN before xAI merged with the social media platform X in March 2025.
Founded in 2002, SpaceX has achieved numerous milestones in space exploration, including launching rockets to the International Space Station and developing reusable spacecraft. As it approaches its IPO, the company is looking to expand its operations and develop new projects in the space sector.
Impact & Consequences
If this investment goes through, it will enhance the position of the Saudi Public Investment Fund in the space market and may open new avenues for cooperation between Saudi Arabia and the global space sector. Additionally, this investment could encourage more foreign investments in the Saudi market, reflecting the Kingdom's Vision 2030 to diversify its economy.
This move is also a sign of confidence in SpaceX's ability to achieve its ambitious goals in space, which may encourage other investors to join this growing sector.
Regional Significance
This collaboration between SpaceX and the Saudi Public Investment Fund represents a significant step towards enhancing innovation in the Arab region. Investment in space technologies could lead to the development of new projects in areas such as communications and data, benefiting the Saudi economy and enhancing its global competitiveness.
In conclusion, this news reflects the increasing trend towards investment in technology and innovation in the region, opening the door to new opportunities for collaboration between global companies and Arab nations.