Nonilex2h ago

#ElonMusk has made a particularly bold demand of his #WallStreet advisers ahead of the #IPO of #SpaceX.

#Musk is requiring banks, law firms, auditors & other advisers working on the IPO to buy subscriptions to #Grok, his #AI #chatbot, which is part of SpaceX, acc/to 4 people with knowledge….

Some of the banks have agreed to spend tens of millions on the chatbot, & they have already started integrating Grok into their #IT systems….

#tech #business #law #SEC #antitrust
https://www.nytimes.com/2026/04/03/business/spacex-ipo-grok-elon-musk.html?smid=nytcore-ios-share

Big Banks Seeking a Piece of SpaceX’s I.P.O. Must Subscribe to Elon Musk’s Grok

Mr. Musk is requiring Wall Street firms to purchase subscriptions to his A.I. chatbot if they want to advise on one of the largest initial public offerings in history.

The New York Times
Show threadNonilex

…Musk’s ability to secure #business from the banks for his #AI #chatbot shows the enormous sway of the world’s richest man over a banking sector clamoring for his business now & into the future.

The banks’ purchases of #Grok subscriptions were not merely good-will gestures, acc/to 3 people with knowledge of the arrangements. #Musk insisted that they purchase the chatbot services. He has also asked the banks to advertise on #X, …but was less adamant about that request, acc/to 2 of those people.

7:28pmWeb
Show threadNonilex2h ago

For now, 5 #banks are expected to work on the offering — #BankOfAmerica, #Citigroup, #GoldmanSachs, #JPMorganChase & #MorganStanley. The #LawFirms #GibsonDunn & #DavisPolk are also advising on the deal.

Musk’s agreement with banks is a big score for #SpaceX, which merged with #xAI in February & whose #Grok is a distant 4th in the #AI race behind #OpenAI’s #ChatGPT, #Claude & #Google’s #Gemini.

#Musk #tech #business #law #SEC #antitrust

Show threadNonilex2h ago

#Musk has marketed #Grok as the antidote to political correctness & said his #chatbot would not be “woke,” unlike its competitors. In recent months, Grok has been mired in controversy after sharing #antisemitic #content & praise of Adolf #Hitler as well as generating nonconsensual #sexualized images of #women & #girls. Some countries, including Indonesia & Malaysia, have banned Grok, while others have opened investigations into its spread of sexualized material.

#AI #tech #business #law

Show threadToni Aittoniemi1h ago

@Nonilex He will not at all be editing the system prompts for Grok which those banks are using for his own benefit.

These deals do not in any way grant him insider access to those bank’s systems.

Show threadStuck Here2h ago

@Nonilex

A friend of mine used to bartend at the Four Seasons down in the Caribbean. A guest who was big in the business of selling bottled water didn't want to see any other brands on the property during his family's week-long stay. So his bottled water was the only one for sale during his stay. After he left all the other water came back out of storage. The wealthy guy's water that was left was just handed out for free til it was gone.

Bending over for $$ is ingrained in the service sector.

Show threadStrider Uwe 🇺🇦🇨🇦🇲🇽2h ago
@Nonilex They are merely good-will gestures, though, even if unacknowledged. From all I hear & read, grok is garbage, so even if they make a good-faith attempt to use it, that will soon fail, in my opinion.
Show threadyuhasz012h ago

@Nonilex

Musk actions are bribes or protection money.....Either way, corrupt and illegal

Show threadAnarchic Teapot ⚧️37m ago

@Nonilex The "world's richest man" likely owes the banks more than he can repay, as was the situation when he bought Twitter. They're throwing good money after bad.

It is also possible that demanding your creditors buy from (not invest in) a high-risk company you intend to float on the stock market later this year, thereby bumping up the financial results short-term, could be considered a teensy bit illegal. Wouldn't that be fun if someone decided to investigate it?