Gina Rinehart’s Significant Investment in SpaceX
Australian billionaire Gina Rinehart’s company, Hancock Prospecting, has made a "significant investment" in Elon Musk’s SpaceX, expressing hopes to collaborate on artificial intelligence (AI) infrastructure.
Hancock Prospecting secured shares as SpaceX began trading on sharemarkets on Friday, Rinehart stated in a release today. Although the exact amount was not confirmed by Rinehart, reports indicate the investment is at least US$1.4 billion.
Rinehart said her investment reflects her confidence in Musk and congratulated him on the company’s 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," Rinehart 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 Record-Breaking IPO and Ambitious Goals
The rocket, satellite, and AI company raised US$75 billion through its record-breaking IPO, reaching a valuation of US$2.1 trillion after its first day of public trading.
SpaceX has proposed launching up to one million data centres into space and aims to establish colonies on the Moon and Mars. However, its prospectus cautions that the company may never become profitable and currently operates 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," SpaceX’s prospectus states.
Rinehart’s Perspective on SpaceX’s Technologies and AI
Rinehart praised SpaceX’s early rocket developments and its Starlink satellite communication network, while expressing particular enthusiasm about the company’s AI initiatives.
"Its work will continue to shape industries, economies and opportunities for decades to come," she said.
Hancock Prospecting’s chief executive, Garry Korte, mentioned that Hancock uses the Grok AI platform and sees potential collaboration with SpaceX as a supplier of critical minerals for its advanced technology infrastructure.
"We look forward to the potential of working with the SpaceX team on its exciting journey," Korte said.
Investment Returns and Holdings
The company has already realised a 20% return on its investment. Investors purchased their allocated shares at US$135 on Friday morning, with the share price closing at US$160.95.
Hancock Prospecting declined to specify the size of its investment when asked about the Wall Street Journal’s report that Rinehart acquired over US$1 billion (A$1.4 billion) worth of SpaceX shares, which is valued at US$2.1 trillion (A$2.97 trillion).
If confirmed, SpaceX would represent Hancock’s largest US shareholding. Hancock’s US-dollar holdings include US$0.7 billion in an Invesco Nasdaq index fund, US$0.7 billion in MP Materials (a rare earths company), US$73 million in Amazon, US$61 million in Meta, US$57 million in Alphabet (Google’s parent company), and US$7.7 million in Musk’s Tesla, among others.
Shareholding Structure and Market Position
Rinehart and other investors do not possess direct voting influence over SpaceX, as of the IPO. Musk, who is chairman and chief executive, holds a majority of both classes of SpaceX shares, making him the world’s first trillionaire following the company’s public debut.
SpaceX ranks as the eighth-largest company on the tech-heavy NASDAQ, with a valuation exceeding Tesla and Meta. It trails only Taiwan Semiconductor Manufacturing Company, Amazon, Microsoft, Apple, Google, and Nvidia.
Investors worldwide, including Australians invested in default superannuation funds, are expected to become indirect backers of SpaceX as it is included in Nasdaq 100 index funds.
Other Investors and AI Competition
SpaceX has not yet been required to disclose its investors, but they include Musk, employees, and Peter Thiel, cofounder of PayPal and founder of Palantir, who reportedly holds US$50 billion worth of stock through his Founders Fund.
SpaceX’s AI competitors, OpenAI and Anthropic, have also raised funds this year and are anticipated to reach valuations near US$1 trillion.
