• Saudi Arabia's PIF and Kuwait Investment Authority are each bidding $1-5 billion for SpaceX (LMT)'s upcoming IPO, with Qatar expected to commit heavily.
  • The orders highlight Gulf states' strategic push into AI and advanced technology, viewing SpaceX as a key asset in the space and AI economy boom.
  • Global oversubscription for the offering reflects investor enthusiasm for SpaceX's dominant position in launch services, Starlink, and related infrastructure.

Gulf Funds Bet Big on SpaceX

Gulf sovereign wealth funds have placed multibillion-dollar orders for SpaceX's highly anticipated IPO, signaling a strategic pivot toward frontier technologies, according to people familiar with the matter. Saudi Arabia's Public Investment Fund and Kuwait Investment Authority are each said to have bids in the $1-5 billion range, with Qatar also expected to make a substantial commitment. The demand is part of broader global oversubscription for the offering, with investors viewing SpaceX as a linchpin in the AI and space economy.

The involvement of Gulf capital underscores the region's ambition to diversify away from oil and secure stakes in transformative tech. SpaceX, valued at over a trillion dollars in private markets, operates launch services, the Starlink satellite internet network, and related space infrastructure. Its integration with AI initiatives, including ties to xAI, has amplified its appeal among sophisticated investors seeking exposure to both aerospace and software AI.

A Strategic Alignment

"This is a landmark moment for sovereign wealth funds," said a senior Gulf investment official, speaking anonymously due to the sensitivity of the deal. "SpaceX represents the convergence of AI, space, and infrastructure—exactly where we want to be positioned for the next decade."

The orders come as SpaceX's IPO is expected to draw intense interest from global institutional investors. While the final valuation remains under wraps, early indications suggest a post-IPO market cap of $1.5–1.8 trillion. Gulf funds' sizable stakes could make them influential long-term holders, potentially shaping corporate governance and strategic direction.

Regulatory and market-access frameworks in the U.S. will determine the final allocation, with some observers noting potential geopolitical scrutiny of sovereign investments in critical technology. However, the funds are undeterred, viewing the IPO as a rare opportunity to back a proven innovator in a high-growth sector.

Correction: An earlier version of this article misstated the Kuwait Investment Authority's bidding range; it is $1-5 billion, not $1-3 billion.