SpaceX is in talks with Saudi Arabia's Public Investment Fund (PIF) over a potential $5 billion stake in the company's upcoming initial public offering, according to a Reuters report. The investment could help preserve PIF's existing 1% ownership in SpaceX, which would otherwise be diluted during the IPO. SpaceX aims to raise $75 billion in what would be the largest IPO in history, surpassing previous record-holders like Saudi Aramco and Alibaba. The company has been securing anchor investors ahead of its planned market launch later this year. No final agreement has been reached, and both SpaceX and PIF declined to comment.
The potential deal comes as PIF has deepened its ties with Elon Musk's ventures. In November 2025, PIF's AI firm Humain partnered with Musk's xAI to build 500 megawatts of data center capacity in Saudi Arabia. PIF also invested $3 billion in xAI through Humain before xAI merged with the social media platform X in March 2025. SpaceX, based in Starbase, Texas, recently submitted confidential IPO paperwork to the SEC.
The IPO would mark a major milestone for SpaceX, which has long been a private company despite its dominance in the commercial space industry. The company's valuation is expected to exceed $150 billion, though exact figures remain unconfirmed. SpaceX's existing investors, including Musk himself, would see their stakes diluted as part of the offering.
Anchor investors like PIF typically commit to fixed stakes before an IPO roadshow, signaling confidence to other potential buyers. SpaceX has been actively courting institutional investors globally, but the scale of its fundraising goal has raised questions about market demand. The company has not yet set a timeline for its IPO roadshow or a target valuation.
The potential PIF investment would represent one of the largest single stakes in a private company's history. If finalized, it would further strengthen the relationship between Saudi Arabia's investment arm and Musk's business empire, which already includes stakes in Tesla and Twitter. SpaceX's IPO is expected to be one of the most closely watched financial events of 2026.