Elon Musk Leverages SpaceX's Record IPO To Force Banks Into Grok Subscriptions: Report

Elon Musk has reportedly mandated the banks and advisors involved in SpaceX‘s upcoming initial public offering (IPO) to purchase subscriptions to the AI chatbot Grok.

The New York Times, citing sources, reported on Friday that some banks have agreed to spend millions annually on Grok and have begun integrating it into their IT systems as a mandatory condition for SpaceX IPO roles.

The company did not immediately respond to Benzinga‘s request for comment.

Wall Street’s Biggest Names Line Up As Bookrunners

The lead banks managing the IPO include Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC) and Citigroup (NYSE:C).

International banks, including the Royal Bank of Canada, Mizuho Financial Group and Macquarie Group, are also participating, focusing on share distribution from their respective markets.

A $75B Raise That Could Rewrite IPO History

The commercial space flight giant has set its target IPO valuation at over $2 trillion, as reported by Bloomberg News. This could potentially make it the largest stock market listing in history. The company aims to raise a record $75 billion, surpassing previous mega-IPOs such as Saudi Aramco in 2019 and Alibaba (NYSE:BABA) in 2014.

SpaceX’s IPO has been a topic of significant interest. The company filed confidentially for its IPO with the Securities and Exchange Commission recently. By filing confidentially, SpaceX could receive SEC feedback and make adjustments before its prospectus becomes public.

Despite the high valuation, prediction markets have been optimistic about SpaceX’s IPO.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.