Gina Rinehart's company, Hancock Prospecting, has made a significant investment in Elon Musk's SpaceX and expressed interest in collaborating on AI infrastructure. The investment was secured as SpaceX began trading on sharemarkets on Friday, according to a statement from Rinehart. The exact figure, which Rinehart did not confirm, is reported to be at least A$1.4bn.
The Australian billionaire stated that her investment reflects her confidence in Musk, congratulating him on his 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.
SpaceX raised US$75bn from its record-breaking IPO and is now valued at US$2.1tn after its first day of public trading. The company, which focuses on rockets, satellites, and AI, has proposed launching up to 1m datacentres into space and aims to establish colonies on the moon and Mars. Its prospectus warns it may never become profitable and runs at an annual loss of billions.
Rinehart praised SpaceX's early rocket efforts and Starlink satellite communication network, expressing excitement about 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 that the company uses the Grok AI platform and could collaborate 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 added.
The company has already seen a 20% return on its investment, with shares purchased at $135 on Friday morning and closing at $160.95. Hancock Prospecting declined to disclose the exact investment size but, if accurate, SpaceX would represent its largest US shareholding.
Rinehart and other investors do not have direct voting influence over SpaceX, as per IPO terms. Musk, who owns a majority of both share types, became the world's first trillionaire after the company's debut. SpaceX is now the eighth-largest company on the Nasdaq, valued more than Tesla and Meta.
