When SpaceX begins its stock market debut this week, Chinese and Hong Kong investors will be absent. This exclusion extends to OpenAI’s upcoming initial public offering.

According to individuals familiar with the decision, SpaceX, Elon Musk’s aerospace and AI firm, has barred these investors from its IPO. These sources have requested anonymity as they are not authorized to speak publicly.

Similarly, OpenAI is likely to implement the same restrictions. Chinese investors have already been excluded from OpenAI’s private fundraising activities, as revealed by insiders.

The rationale behind these restrictions is undisclosed, and it remains uncertain if the U.S. government’s stance influenced the decision. The U.S. has shown a focus on protecting AI advancements from Chinese influence, particularly from firms that service U.S. governmental needs.

This marks a significant departure from previous practices where Chinese investors were able to engage in private funding in sensitive sectors. For many regional bankers, this is the first exclusion of mainland Chinese and Hong Kong investors from a large American IPO.

The move underscores the growing divide between the U.S. and China, particularly in the fields of technology and science, where cooperation has been on the decline.