Some banks involved in SpaceX’s initial public offering have committed tens of millions of dollars to Grok subscriptions and services, according to The New York Times citing four unnamed sources. These banks are integrating the Grok chatbot into their IT systems as SpaceX prepares for what could be the largest IPO in history.
The evaluation of the IPO may reach up to $1.75 trillion, potentially raising over $50 billion for SpaceX while generating more than $500 million for the banks involved. Banks possibly participating include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and law firms Gibson Dunn and Davis Polk.
Elon Musk is reportedly pushing for initiatives that could benefit both Grok, which faces legal scrutiny for alleged unlawful data processing, and X, the social platform that has encountered challenges since Musk’s acquisition four years ago. Musk demands support from the banks for Grok, and has also requested IPO investors to promote advertising on X, although he was not insistent about this request.
To enhance Grok’s competitiveness against established AI players like OpenAI, Meta, Google, and Anthropic, Musk has promoted Grok on X. Last month, the platform began testing a new advertising model by featuring SpaceX’s Starlink internet service within X posts.
