Some banks have agreed to spend millions on subscriptions and services for Grok as they prepare for SpaceX’s initial public offering (IPO), which is projected to be the largest in history. The IPO could achieve a valuation up to $1.75 trillion, potentially raising over $50 billion for SpaceX.
The IPO is anticipated to generate significant revenues for the involved banks, potentially exceeding $500 million. Banks linked to this process include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and law firms Gibson Dunn and Davis Polk.
SpaceX recently acquired xAI and X, establishing a $1 trillion ecosystem focused on AI infrastructure. Elon Musk is pushing for investments in Grok amid legal investigations concerning unlawful data processing practices and harmful content generation related to the chatbot.
Additionally, Musk has asked IPO investors to promote advertising on X, although he has been less insistent on this requirement, according to NYT. To enhance Grok’s popularity against competitors such as OpenAI and Google, Musk actively promotes the chatbot on the X platform.
In an effort to increase revenue streams, last month X initiated a test of a new advertisement product, featuring promotions for SpaceX’s Starlink internet service directly within posts on the platform.
