SpaceX left out key details about its acquisition of artificial intelligence startup xAI in its regulatory filing to go public, hindering investors\u2019 ability to make fully informed decisions about the company, a shareholder group told the Securities and Exchange Commission on Tuesday.<\/p>\n
Space Exploration Technologies Corp.’s financial paperwork<\/a> doesn\u2019t mention the exodus of xAI co-founders following the Feb. 2 deal<\/a>, SOC Investment Group said in a letter<\/a> to SEC Chairman Paul Atkins and the agency\u2019s commissioners. The rocket, satellite, and artificial intelligence company listed June 12 with an initial public offering<\/a> that raised $75 billion and turned founder Elon Musk into the world\u2019s first trillionaire.<\/p>\n The staff churn surrounding the acquisition should have prompted analyses about whether the value of xAI\u2019s assets were affected, the shareholder group said. <\/p>\n The deal gave xAI a value of $250 billion, Bloomberg News has reported<\/a>. Previously, xAI had bought Musk\u2019s social network, X.<\/p>\n The letter comes as the SEC under Atkins aims to ease the process<\/a> for companies to go and stay public. With tech giants OpenAI and Anthropic now preparing<\/a> for their own IPOs, the shareholder group urged the SEC to ensure it thoroughly vets companies in its review process. <\/p>\n SOC Investment Group, an adviser to union-affiliated pension funds, doesn\u2019t own any stock in SpaceX. It has previously cautioned<\/a> investors about purchasing SpaceX stock, saying the company\u2019s governance policies weaken avenues to hold management accountable. The group urged<\/a> the SEC in May to review SpaceX\u2019s financial disclosures for accuracy and ensure its auditor\u2014named in its SEC filing as PricewaterhouseCoopers LLP\u2014remains independent.<\/p>\n SpaceX didn\u2019t disclose in its June 3 amended registration form, called an S-1, that most of xAI\u2019s co-founders<\/a> left the startup between February and late March, Tuesday\u2019s letter said. It pointed specifically to SpaceX\u2019s disclosure of so-called subsequent events, which included discussions of the xAI deal closing in February.<\/p>\n