When SpaceX enters the stock market this week, investors from China and Hong Kong will not participate in the excitement. These investors are also likely to be excluded from OpenAI’s anticipated initial public offering.
Elon Musk’s SpaceX, which focuses on rockets and artificial intelligence, has decided to prevent investors in China and Hong Kong from joining its IPO. This information comes from five sources familiar with the decision, who declined to be named as they were not authorized to discuss the matter publicly.
OpenAI, another significant player in the AI field, is expected to follow SpaceX’s lead by imposing similar restrictions on Chinese investors for its public offering planned for this year. It has already restricted Chinese investments in private fundraising, according to sources.
The reasons for these companies’ reluctance to accept investments from China remain undisclosed. It is unclear if the decision aligns with the policies of the Trump administration, but Washington has concentrated on preventing China’s access to artificial intelligence technologies. Both SpaceX and OpenAI consider the U.S. government as a significant client.
Chinese investors have been largely excluded from private investments in sensitive sectors for some time. However, this might represent the first occasion when investors from mainland China and Hong Kong are barred from a significant American IPO, according to regional bankers.
This situation reflects the ongoing reduction in trade, investment, and collaboration between the United States and China, especially in sectors like technology and science.
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