Washington Raises Concerns Over SpaceX’s Financial Ties to Chinese Interests

Two Democratic senators demand an urgent investigation into undisclosed Chinese investments in SpaceX. As Elon Musk has just merged his space giant with xAI for $1.25 trillion, Washington wonders: what if Beijing had already set foot in the most sensitive technologies of the United States?

Senators worried about possible Chinese influence at SpaceX

Elizabeth Warren and Andy Kim do not mince words. In their letter addressed to Secretary of Defense Pete Hegseth, the two senators denounce a questionable financial scheme. According to them, Chinese funds would have passed through Caribbean tax havens to discreetly purchase shares of SpaceX.

The evidence is mounting. Press articles and judicial testimonies point to the same scenario: entities located in the Cayman Islands and British Virgin Islands serving as a screen to conceal the real origin of the capital. A classic technique to circumvent U.S. oversight.

The issue goes beyond mere financial matters. SpaceX is not a company like any other. It deploys American military satellites, develops strategic space technologies, and holds sensitive contracts with the Pentagon. Any foreign intrusion into its capital could compromise national security.

FOCI rules come into play. These regulations concerning foreign ownership, control, or influence impose strict safeguards when non-U.S. investors touch strategic companies. Warren and Kim want to know if SpaceX is subject to them, and especially if these rules are being respected.

A merger that thickens the mystery

The timing is causing a stir in Washington. Why does Musk announce the SpaceX-xAI merger precisely now? For the senators, this titanic operation makes the investigation even more urgent. It mixes space technologies, artificial intelligence, and sensitive data in an explosive cocktail.

Musk defends his vision. AI must conquer space, he asserts, because terrestrial data centers are reaching their limits. Colossal energy consumption, polluting cooling systems, noise pollution: the billionaire wants to move the infrastructure into Earth’s orbit. Space AI is the only way for optimal scaling, he insists.

But skeptics see something else. They compare this merger to the controversial acquisition of SolarCity by Tesla in 2016. At the time, Musk was accused of using a prosperous company to save one in distress. A pattern that could repeat, with xAI burning hundreds of millions against Google and OpenAI.

Investors await answers. The Committee on Foreign Investment in the United States could look into the case. Besides, the matter arises while Musk is already facing French justice over his AI Grok, accused of generating illegal content. Regulators worldwide are tightening the noose.

Washington will not joke with space sovereignty. The senators demand accountability before February 20th and threaten to go further. In this geopolitical chess game, SpaceX becomes a major stake where private ambitions intersect with national interests. Musk will have to choose: transparency or confrontation.