Pentagon to investigate claims SpaceX quietly sold stock to China-linked investors
SpaceX founder Elon Musk (Photo: Getty Images)
In the Senate, lawmakers called on the Pentagon to immediately review SpaceX over the possible purchase of company stakes by Chinese investors, which could pose a threat to US national security, reports Reuters.
Read also: New global record: Elon Musk's net worth nears one trillion dollars — Forbes
Democratic senators Elizabeth Warren and Andy Kim, in a letter to US Defense Secretary Pete Hegseth, said that media reports and court testimony may indicate non-transparent investments from China through offshore structures in the Cayman Islands and the British Virgin Islands, which allegedly allowed Chinese funds to enter SpaceX’s ownership structure.
The lawmakers emphasized that SpaceX, founded by Elon Musk, plays a key role in US national security. The company launches military and intelligence satellites and also operates the Starlink network, which is used by the Pentagon and to support Ukraine’s defense. For this reason, they said, any foreign influence could threaten sensitive technologies and information.
Warren and Kim are demanding that the US Department of Defense clarify the extent of potential Chinese ownership in SpaceX and determine whether it falls under US foreign ownership, control, or influence rules (FOCI), and whether it should be reviewed by the Committee on Foreign Investment in the US (CFIUS). They are expecting a response by February 20.
The letter also mentions SpaceX’s recent merger with xAI, which the senators say increases the need for a review, as the combination of artificial intelligence, space, and communications technologies could make the company even more vulnerable to potential foreign influence.
SpaceX has not yet commented on the review request.
A Chinese reusable rocket recently made an emergency landing after launch, underscoring that China remains behind SpaceX in the space race.
Earlier reports noted that OpenAI completed a deal valuing the company at $500 billion. This enables it to surpass Elon Musk’s SpaceX and become the world's most valuable private company.
