[Exclusive] Sovereign Wealth Fund KIC Focuses on Top 2 US Private Companies... Investment Proposals from OpenAI and SpaceX

OpenAI Attracts Investments from Major Domestic Institutions Including KIC and Multiple Pension Funds and Mutual Aid Associations
SpaceX's Valuation Surges Since Trump's Election, Investment Value Under Review

The sovereign wealth fund Korea Investment Corporation (KIC) has reportedly secured a stake by investing in OpenAI, the developer of the generative artificial intelligence (AI) ChatGPT. It is also understood that KIC has received an investment proposal for SpaceX, the space exploration company whose valuation has surged following Donald Trump's victory in the U.S. presidential election.

According to the investment banking (IB) industry on the 15th, KIC recently received investment proposals for two of the largest private companies in the U.S. and is conducting a comprehensive review. Among them, it is known that the investment in OpenAI has been completed, while for SpaceX, KIC is currently reviewing the valuation and investment returns based on the investment proposal received.

An IB industry insider said, "In the case of OpenAI, three global venture capital (VC) firms brought a significant amount of shares into Korea, and many domestic institutions have invested," adding, "The significance lies more in securing information on leading future technologies rather than in meaningful investment returns."

OpenAI recently completed a new funding round worth approximately KRW 8.74 trillion. In this process, OpenAI was valued at about KRW 208 trillion. This valuation is more than five times higher than the valuation of approximately $29 billion when Microsoft (MS) made an additional $10 billion investment in January last year.

Existing major shareholders such as MS, Nvidia, Japan's SoftBank Vision Fund, Silicon Valley VC Khosla Ventures, and UAE investment firm MGX reportedly participated in this funding round.

Although not publicly announced, it is known that a condition of the funding includes transitioning to a fully for-profit company within two years. Currently, OpenAI’s non-profit parent company controls a for-profit subsidiary, but OpenAI is pursuing a structure change to become a fully for-profit company.

A senior IB industry official hinted, "OpenAI requires the construction of massive data centers to proceed with its business," adding, "An additional funding round is scheduled for next year."

Additionally, KIC is also reviewing an investment in SpaceX, the space exploration company led by Elon Musk, CEO of Tesla. Musk, who significantly contributed to Trump’s presidential victory, has emerged as a close aide to the incoming administration, even being considered for the head of the 'Government Efficiency Department,' which has sharply increased SpaceX’s corporate value.

An IB industry insider explained, "The current valuation is about 20% higher than when the initial proposal was received, and it could rise further before the deal is finalized," adding, "From an investment return perspective, this is a situation that requires careful consideration."

SpaceX, led by Musk, is developing the space internet service 'Starlink' and space rockets. Since the first communication satellite launch in 2019, Starlink has launched over 6,000 satellites as of this year, and the related business turned profitable for the first time in November last year.

In the core area of space exploration, launch vehicles, SpaceX is innovating with reusable rocket technology. SpaceX’s 'Falcon 9' has reduced the cost per launch to about $60 million (approximately KRW 83 billion), which is one-third of the cost of conventional rockets. Recently, the Starship spacecraft for lunar and Mars exploration succeeded in its fifth test flight and demonstrated new technology using robotic arms to land rockets.

In the global capital markets, there is analysis that if the stability of SpaceX’s large Mars exploration spacecraft Starship is secured, SpaceX’s corporate value could soar to $800 billion (approximately KRW 1,123 trillion). Leading global capital market players such as Brookfield Asset Management and Sequoia Capital have boldly bet on SpaceX. Domestically, Mirae Asset Venture Investment and Aju IB Investment have made investments.