Australian billionaire Gina Rinehart's company, Hancock Prospecting, has made a 'significant investment' in Elon Musk's SpaceX, with hopes of collaborating on artificial intelligence infrastructure. The investment was secured as SpaceX began trading on sharemarkets on Friday, Rinehart confirmed in a statement, though she did not disclose the exact figure, which is reportedly at least $1.4bn.
Rinehart Praises Musk's Vision
Rinehart expressed confidence in Musk, congratulating him on the record-breaking initial public offering (IPO). 'Elon has done what very few people in history have done – he has not just imagined the future, he has built companies capable of delivering it, and helped to keep American technology at the forefront,' she said. 'We see SpaceX as a rare business: led by a truly exceptional person, technically exceptional and operating in sectors that are crucial, and with long-term potential. Hancock favours investing in industries led by sensible, hard working, patriotic and exceptional people. Elon excels in every regard.'
SpaceX's Historic IPO
The rocket, satellite and AI company raised US$75bn from its IPO, now valued at US$2.1tn after its first day of public trading. SpaceX's ambitious plans include launching up to 1m datacentres into space and establishing colonies on the moon and Mars. However, its prospectus warns it may never become profitable and runs at a loss of billions annually. 'Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars,' the prospectus reads.
AI Prospects and Collaboration
Rinehart praised SpaceX's early rocket efforts and Starlink satellite network but highlighted excitement for its AI prospects. 'Its work will continue to shape industries, economies and opportunities for decades to come,' she said. Hancock Prospecting CEO Garry Korte noted the company uses the Grok AI platform and could work with SpaceX as a supplier of critical minerals for advanced technology infrastructure. 'We look forward to the potential of working with the SpaceX team on its exciting journey,' Korte added.
Investment Returns and Holdings
Hancock has already seen a 20% return, with shares purchased at $135 closing at $160.95. The company declined to detail the investment size, but if the Wall Street Journal's report of over US$1bn is accurate, SpaceX would be Hancock's biggest US shareholding. Other US holdings include $0.7bn in an Invesco Nasdaq index fund, $0.7bn in MP Materials, $73m in Amazon, $61m in Meta, $57m in Alphabet, and $7.7m in Tesla.
Voting Influence and Market Position
Rinehart and other investors have no direct voting influence per IPO terms. Musk owns a majority of both share types, making him the world's first trillionaire. SpaceX is the eighth-largest company on the NASDAQ, worth more than Tesla and Meta, behind TSMC, Amazon, Microsoft, Apple, Google, and Nvidia.
Indirect Backing and Competitors
Investors worldwide, including Australians in default super funds, are expected to become indirect backers as SpaceX enters Nasdaq 100 index funds. While SpaceX hasn't disclosed all investors, known backers include Musk, employees, and Peter Thiel via Founders Fund, holding an estimated $50bn in stock. AI rivals OpenAI and Anthropic have also filed to go public, predicted to raise record sums at valuations near $1tn.
