SpaceX’s acquisition of xAI gives Musk an estimated net worth of more than an estimated value of $800 billion; the acquisition has made the combined company approximately $1.25 trillion. The merger between these two companies is considered to be one of the largest private-sector tech mergers in the history of aerospace and technology systems.
Although the merger makes significant changes to Musk’s wealth, before the merger, Musk already had meaningful ownership in both SpaceX and xAI. SpaceX had a rough value at around $800 billion in the private markets, and xAI was about $250 billion after the latest fundraising.
Musk will own approximately 43% of the combined entity once the merger closes, which would value SpaceX on paper to be more than $540 billion. This makes SpaceX the most valuable asset of Musk, by a large amount.
In addition to his SpaceX investment, Musk has a significant position in Tesla and could also have hundreds of billions of dollars added to his net worth with stock options that are based on meeting performance targets.
In less than a year, Musk’s companies have completed their second major merger when xAI and X merged together. This merger has raised questions about the valuations assigned to both xAI and Elon Musk; as the companies face significant public scrutiny regarding their valuations.
Space-Based Data Centers
Merger intends to create data centers based in space, states Musk. He believes that traditional AI infrastructure uses large amounts of electricity and cooling, which will eventually not be sustainable on our planet.
Instead, he believes that placing data centers in space will relieve pressure on the country’s electric grids and provide enough power for the future growth of AI. In order for this to occur, continual launch of satellites would be necessary, creating additional long-term income for SpaceX.
While both companies face long-term opportunities, they also face near-term issues. Reports indicate that xAI has been losing nearly $1 billion monthly, while SpaceX still is heavily relying on revenue from its Starlink satellite services.
Additionally, SpaceX is proving its Starship rocket for missions to the Moon and Mars, and xAI competes with major companies such as Google and OpenAI in a rapidly changing and competitive Artificial Intelligence business.
A large divide between the rich and the poor
Musk’s fortune dwarfs that of the next richest person in the world, Larry Page, who is estimated to be worth approximately $280 Billion.
The $580 billion gap that exists between Musk and Page demonstrates exactly how dominant Musk has become in the global wealth rankings. Analysts believe that Musk is within reach of being the first trillionaire in the history of the world.
With SpaceX reportedly on the verge of going public, potential public investors may soon get the chance to evaluate the entire Musk business empire more closely.
The SpaceX to xAI merger has solidified Musk’s position not only as the wealthiest person on earth, but one of the most important people in the development of space, AI and globally developing technology.
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