Elon Musk’s SpaceX is in discussions with Saudi Arabia’s Public Investment Fund about securing a roughly $5 billion anchor stake ahead of what could become the largest initial public offering in stock market history. People familiar with the matter say the conversations are ongoing, though no final agreement has been reached and the terms remain subject to change.
The potential investment would serve a dual purpose for the Saudi sovereign wealth fund. Beyond establishing a more prominent position in one of the world’s most closely watched private companies, it would also help protect the value of PIF’s existing stake in SpaceX, which currently sits at just under one percent.
The scale of what SpaceX is attempting
The numbers involved are difficult to put into context without looking at what came before. SpaceX is targeting a raise of $75 billion in its upcoming public offering. That figure would comfortably surpass the previous benchmarks set by Saudi Aramco’s 2019 listing and Alibaba’s 2014 debut, both of which were considered landmark moments in the history of public markets.
To support an offering of that scale, SpaceX has been working to line up anchor investors well in advance of any formal roadshow. Anchor investors are institutional buyers who commit to a fixed position before an IPO officially launches, providing a signal of confidence that helps generate broader demand from the wider investment community. A significant portion of the offering is also expected to be allocated to wealthy individual investors connected to the banks managing the deal.
A deepening relationship between two powerful players
The potential SpaceX investment would not mark PIF’s first major financial move within Musk’s orbit. In late 2025, PIF’s artificial intelligence subsidiary and Musk’s AI company xAI announced a collaboration to deploy 500 megawatts of data center capacity across Saudi Arabia. Shortly before that partnership was formalized, PIF committed $3 billion through that subsidiary ahead of xAI’s merger with the social media platform X.
The pattern suggests a strategic and growing alignment between the Saudi fund and Musk’s expanding portfolio of companies, one that now appears poised to extend into SpaceX’s long-anticipated public debut.
What comes next for the rocket company
SpaceX, which is headquartered in Starbase, Texas, has already submitted confidential IPO paperwork with the Securities and Exchange Commission and is targeting a market launch before the end of the year. The confidential filing process allows companies to test investor appetite and refine their offering before any public disclosure is required, a route increasingly favored by high-profile issuers navigating uncertain market conditions.
Whether the Saudi fund ultimately commits at the level currently under discussion remains unclear. Sources familiar with the conversations have emphasized that talks are continuing and that nothing has been finalized. Still, the mere fact that discussions of this size are taking place speaks to the appetite among global institutional investors for a piece of one of the most consequential private companies ever built.
A company that has redefined what is possible
SpaceX has spent the better part of two decades reshaping the economics and ambitions of the space industry. From reusable rockets to a global satellite internet network, the company has consistently operated at a scale that few competitors have been able to match. An IPO at the size it is reportedly targeting would not just be a financial milestone. It would be a statement about where the company sees itself going next.
