SpaceX and OpenAI to bar Chinese and Hong Kong investors from upcoming IPOs
Both companies plan to exclude investors from China and Hong Kong in their initial public offerings, citing undisclosed reasons amid U.S. concerns over AI technology transfer.
Investors from China and Hong Kong will not be permitted to participate in the initial public offerings of SpaceX and OpenAI, according to sources familiar with the companies' plans. Five people with knowledge of SpaceX's decision and three familiar with OpenAI's approach said the firms have deliberately excluded the region from their upcoming equity sales. SpaceX, the aerospace and artificial-intelligence firm founded by Elon Musk, is set to begin trading this week, while OpenAI is expected to go public later in the year. Both companies have previously barred Chinese investors from private fundraising rounds, and they have not publicly explained the rationale for the current restrictions. U.S. officials have expressed a broader interest in limiting the transfer of advanced AI capabilities to China, and both firms count the U.S. government among their major customers.
"We are taking steps to ensure our technology does not fall into the hands of foreign adversaries," a spokesperson for one of the companies said. The move comes as Washington intensifies scrutiny of AI exports, though it is unclear whether the companies acted on direct guidance from the administration.
