Elon Musk’s SpaceX has entered discussions with Saudi Arabia’s Public Investment Fund (PIF) for a potential $5 billion anchor investment in the space company’s highly anticipated IPO, according to sources familiar with the talks. The move signals a potential deepening of the relationship between the Saudi sovereign wealth fund and Musk’s portfolio of tech companies.
Quick Facts
- Potential $5 billion anchor investment from PIF.
- SpaceX targeting a record-breaking $75 billion IPO.
- PIF already holds a stake of under 1%.
- Talks are confidential and no final decision is made.
A Strategic Move to Prevent Dilution
For the PIF, the significant investment would serve a dual purpose. Beyond backing one of the world’s most valuable private companies, the $5 billion stake would help prevent the dilution of the fund’s existing holding, which currently stands at just under 1% in SpaceX.
By committing as an anchor investor ahead of the IPO roadshow, the PIF would signal strong confidence in SpaceX’s public market debut, potentially helping to build momentum and underpin demand for the offering.
Gauging Appetite for a Landmark IPO
SpaceX is reportedly aiming to raise an unprecedented $75 billion from its stock market launch, an amount that would eclipse previous mega-IPOs like Saudi Aramco in 2019 and Alibaba in 2014. According to Reuters, the company has been actively lining up major institutional buyers to gauge investor interest for a deal of this massive scale.
The company recently submitted its confidential IPO paperwork with the U.S. Securities and Exchange Commission (SEC) and is targeting a market launch later this year.
Deepening Ties with Musk’s Tech Empire
This potential investment is not the PIF’s first engagement with Musk’s ventures. The Saudi fund has been actively strengthening its ties with his business empire.
In November 2025, the PIF-backed AI firm Humain announced a collaboration with Musk’s xAI to deploy 500 megawatts of data center capacity in Saudi Arabia. Following this, PIF invested $3 billion through Humain before xAI’s merger with the social media platform X in March 2025.
About SpaceX
Founded by Elon Musk, SpaceX is an American aerospace manufacturer, space transportation services, and communications corporation. The company’s goal is to reduce space transportation costs to enable the colonization of Mars. It designs, manufactures, and launches advanced rockets and spacecraft, including the Falcon 9 and Starship vehicles, and operates the Starlink satellite internet constellation.
About The Public Investment Fund (PIF)
The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of over $925 billion. The fund is a key driver of Saudi Arabia’s Vision 2030, aiming to diversify the kingdom’s economy away from oil by making significant investments in a wide range of local and international sectors.
Source: Zawya