Kelly Loeffler’s SpaceX and xAI investments rose sharply after record IPO

WASHINGTON: Kelly Loeffler, the head of the US Small Business Administration, saw the value of her investment in Elon Musk’s SpaceX rise by millions of dollars after her nomination to the post.

Loeffler disclosed an investment of between $1 million and $5 million in xAI, Musk’s artificial intelligence and social media company, as of January 3, 2025, in a filing submitted before she became SBA administrator. XAI has since merged with SpaceX. A second disclosure, covering all of her investments for 2025 and signed on May 14, 2026, showed that she later invested again in SpaceX and xAI for between $1 million and $5 million. Reuters obtained that form from the SBA on June 12, and said the second investment had not previously been reported.

Two independent government ethics attorneys agreed with Reuters’ reading of Loeffler’s disclosure. US cabinet members report the value of assets in ranges on required disclosure forms and do not list the dates of investments made before taking office. The Senate confirmed Loeffler as SBA administrator on February 19, 2025.

IPO-driven gains

SpaceX priced the biggest-ever US initial public offering on June 12, valuing the space, satellite and AI company at $1.77 trillion. Franco Granda, an analyst at data provider PitchBook, told Reuters that Loeffler’s first investment in xAI would have been worth between $7 million and $2.6 billion on the day of the IPO, depending on the precise amount invested and when the investment was made. Her second investment, he said, would have been worth between $2.2 million and $25.4 million that day.

The earlier investment would have produced a higher value at the time of the IPO. XAI’s valuation rose by more than 7,000% between its first investment round and January 5, 2025, while SpaceX’s valuation more than doubled in 2025.

Ethics and official role

SpaceX is a US military contractor, and federal law bars cabinet members from taking part in decisions involving a company in which they have a financial interest. Public records, however, do not show a financial relationship between the SBA and either xAI or SpaceX. XAI was not included on the public list of AI tools used by SBA employees in 2025.

Loeffler and her team did not respond to multiple requests for comment about her SpaceX investment. At least 10 Trump administration officials listed investments in SpaceX or xAI on their 2025 financial disclosure forms, though none of those officials worked for the Defense Department.

Background on Loeffler

Loeffler initially invested in xAI through a private placement, an investment route typically available to selected individuals and institutions with substantial financial resources. It described her as a wealthy businesswoman who previously served as founding chief executive of bitcoin trading platform Bakkt and spent 16 years at Intercontinental Exchange, the company that owns the New York Stock Exchange, according to her LinkedIn profile.

She is married to Intercontinental Exchange chief executive Jeffrey Sprecher and briefly represented Georgia in the US Senate. The SBA, which she now leads, helps entrepreneurs launch and expand small businesses and links business owners with lenders and funding, including support for recovery from natural disasters, according to the agency’s website.