China Investors Excluded from A.I. Firms’ Public Offerings

When SpaceX begins trading this week, investors from China and Hong Kong will not take part in the initial public offering (IPO) excitement. OpenAI’s upcoming IPO is also likely to exclude these investors.

According to five anonymous sources familiar with SpaceX’s decision, the company is deliberately excluding investors in China and Hong Kong from participating in its IPO. OpenAI plans similar measures, as stated by three insiders with knowledge of the company’s discussions. OpenAI has already restricted Chinese investors from private funding rounds.

The specific reasons behind the reluctance of these companies to accept investments from China and Hong Kong have not been disclosed. It is uncertain if the decisions are influenced by the U.S. government’s efforts to limit China’s access to artificial intelligence technologies.

Chinese investors have faced exclusion from private investments in sensitive areas for years. However, this marks a significant shift, as it is likely the first instance of excluding investors from mainland China and Hong Kong from a major American IPO, according to bankers in the region.

This development underscores the ongoing reduction in trade, investment, and collaboration between the United States and China, especially in technology and science sectors.