Elon Musk has turned Wall Street's pursuit of SpaceX's record-breaking IPO into a forced-sale channel for his AI chatbot. According to the New York Times reported July 23, banks, law firms, and auditors competing for roles in the offering must buy subscriptions to Grok — a condition several institutions have accepted, committing tens of millions of dollars annually.
Five Lead Bookrunners Accept the Terms
Four people familiar with the confidential discussions told the Times that Musk insisted on the mandate. The five active bookrunners — Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley — have all agreed. International participants including Royal Bank of Canada, Mizuho Financial Group, and Macquarie Group are also onboard, focusing on share distribution in their home markets. Musk separately asked the banks to advertise on X but was considerably less insistent on that point, sources said.
Grok Gets a Captive Customer Base
SpaceX acquired xAI in an all-stock deal in February 2026, folding Grok and X into its structure. xAI was valued at $250 billion at the time. Grok currently ranks fourth among AI chatbots, behind ChatGPT, Claude, and Gemini. The subscription requirement effectively turns the IPO process into a distribution mechanism for xAI's product, with the 21 banks involved representing a significant and captive customer base. Musk appears to view them as both sales channels and capital-raising partners.
Lock-Up Waiver Adds Unconventional Twist
Bankers involved in the deal are also reportedly considering waiving the traditional 180-day lock-up period that prevents insiders from selling shares right after listing — a move that has drawn concern from some market observers about potential conflicts of interest.
SpaceX Targets June Nasdaq Listing at $1.75 Trillion
SpaceX is set to list on Nasdaq in June 2026 with a target valuation of $1.75 trillion and a raise of up to $75 billion. Despite nearly 23 years of operations and zero net earnings as of early 2026, the company plans to use IPO proceeds for orbital data centers, a lunar base, and crewed Mars missions. The offering is emerging as a defining test of how Wall Street adapts to Musk's increasingly integrated financial, AI, and infrastructure empire.