Michael Grimes returns to Morgan Stanley as chairman to lead SpaceX's potential $40B IPO
Feb 10, 2026
Key Points
- Michael Grimes rejoins Morgan Stanley as chairman of investment banking to lead SpaceX's $40 billion IPO, the largest underwriting in history with an estimated $400 million in fees.
- Grimes took Facebook, Google, Tesla, Uber, and Spotify public over two decades, and his 1985 internship at Hughes Aircraft in space and communications gives him unusual domain expertise for SpaceX.
- Morgan Stanley, Bank of America, JPMorgan, and Goldman Sachs are locked in as lead underwriters, with prediction markets showing 89-100% odds of their involvement.
Summary
Michael Grimes has rejoined Morgan Stanley as chairman of investment banking, positioning himself to lead what could be the largest IPO underwriting in history. SpaceX is expected to raise roughly $40 billion, with an estimated $400 million in underwriting fees split among the lead banks.
Grimes is uniquely positioned for the assignment. Over two decades at Morgan Stanley, he took Facebook, Google, Tesla, Uber, Spotify, Salesforce, LinkedIn, Workday, and hundreds of other tech companies public. He studied electrical engineering and computer science at Berkeley, worked at Salomon Brothers and Bear Stearns before joining Morgan Stanley, and interned at Hughes Aircraft in the space and communications group in 1985—a full-circle moment given SpaceX's core business.
His career inflection came when Frank Quatrone, the heavy hitter heading Morgan Stanley's Menlo Park office, left the bank. Grimes stayed and grew into co-head of West Coast investment banking and eventually co-head of global technology banking in 2005. His office became legendary among deal bankers—so cluttered with deal toys that there's no space to set down a coffee cup.
The return from the Commerce Department signals Grimes' hunger for the deal. While working in government, he reportedly watched former colleagues pitch for roles on what could be the largest IPO of all time. The promotion itself is notable: chairman of investment banking ranks above his previous title of head of global technology banking.
SpaceX was merged with Elon Musk's AI company xAI ahead of the IPO. The bankroll is straightforward: four lead banks—Morgan Stanley, Bank of America, JPMorgan, and Goldman Sachs—are locked in to underwrite the deal. Prediction markets on Kalshi show the major bulge bracket banks at between 89% and 100% involvement odds, with Citi at 56%, suggesting potential secondary roles.
Grimes' track record on customer immersion has become legendary in the industry. He played hours of FarmVille before taking Facebook public to understand the platform's full business case and ecosystem potential. He drove for Uber before taking it public in 2018. For the SpaceX roadshow, that same diligence pattern suggests he will need to understand the space business at an operational level—though the stakes of a $40 billion IPO underwriting are far larger than previous deals.