Elon Musk’s now-merged AI company, xAI, is demanding that Wall Street subscribe to its Grok chatbot before it can secure a role in SpaceX’s initial public offering (IPO) this year. The move is seen as an effort to boost xAI’s revenue before the public debut, with roadshows expected to kick off in the week of June this year.
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Several financial firms connected to Musk’s business network have already begun testing Grok internally. However, adoption remains limited compared with rival AI tools such as Anthropic’s Claude and OpenAI’s ChatGPT. Moreover, Grok is yet to gain a strong foothold across the broader finance industry.
Wall Street Banks Begin Testing Grok
Major Wall Street banks, including Morgan Stanley (MS) and Apollo Global Management (APO), have started using Grok after xAI’s demands. The banks are using the chatbot internally alongside AI software from competing firms. Valor Equity Partners is also testing the AI tool before integrating it fully into its systems.
However, despite these companies signing up for Grok, many firms in the financial sector still rarely use the chatbot for actual work activities. This is because the Grok chatbot is still viewed by some users as a weaker tool than OpenAI’s and Anthropic’s chatbots.
The push comes as xAI tries to rapidly increase its revenue before SpaceX’s expected public listing. Notably, much of xAI’s returns so far have come from deals involving Musk-owned companies, including SpaceX and Tesla (TSLA).
xAI Faces Pressure to Grow Revenue
xAI is now under pressure to boost its financial position as competition in the AI sector surges. The AI firm has been selling chatbot subscriptions and access to its computing resources to build more revenue streams.
Before xAI’s merger with SpaceX earlier this year, the company had been spending almost $1 billion per month to grow its business and compete with larger AI firms. xAI’s aggressive push also shows how many AI companies are working to secure enterprise customers and create better revenue models.
At the same time, SpaceX’s expected IPO has added pressure to xAI’s push for better performance and market usage. Altogether, these developments show how Musk is growing his business across the AI, finance, electric vehicles, and aerospace industries.
Will SpaceX Be the Largest IPO?
SpaceX, the aerospace and AI company founded by Musk, could be the largest IPO in history when it goes public next month. The company has a target valuation of $1.75 trillion, which would put it at nearly 95 times its projected 2025 revenue of $18.5 billion. To get the latest updates on SpaceX and ahead of its IPO, visit the TipRanks Private Company Center.
