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Akbar Novruz

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Elon Musk has become the first person in history to amass a fortune exceeding $800 billion, following a landmark deal in which SpaceX acquired his artificial intelligence and social media company xAI, dramatically reshaping his business empire, Azernews reports via Forbes.

According to Forbes, the transaction values the combined entity at $1.25 trillion and has boosted Musk’s net worth by $84 billion, taking it to a record $852 billion. The merger values SpaceX at $1 trillion and xAI at $250 billion, consolidating Musk’s most powerful assets under a single corporate umbrella.

Prior to the deal, Musk owned an estimated 42% stake in SpaceX, worth around $336 billion, based on a December tender offer that valued the privately held rocket maker at $800 billion. He also held approximately 49% of xAI, valued at $122 billion, following a recent private fundraising round that pegged the AI company at $250 billion. After the merger, Forbes estimates Musk now controls a 43% stake in the combined company, worth roughly $542 billion.

The transaction cements SpaceX as Musk’s most valuable asset by a wide margin, eclipsing even his holdings in Tesla. Musk currently owns about 12% of Tesla, valued at $178 billion, alongside Tesla stock options worth an additional $124 billion. These figures do not include the record-breaking compensation package approved by Tesla shareholders in November, which could grant Musk up to $1 trillion in additional Tesla stock—before taxes and vesting costs—if the company meets ambitious long-term performance targets, including an eightfold increase in market capitalization over the next decade.

This is the second major consolidation of Musk-owned companies in less than a year. In March last year, Musk merged xAI with his social media platform X (formerly Twitter), valuing xAI at $80 billion and X at $33 billion, roughly in line with what Musk paid for Twitter in 2022, excluding debt.

Musk’s dual role as both buyer and seller in these internal mergers has prompted questions from analysts and investors about valuation transparency, particularly given the private nature of the companies involved. However, those concerns may soon face a real test. SpaceX is widely expected to pursue an initial public offering later this year, a move that would subject the entire conglomerate—including xAI and X—to the scrutiny of public markets for the first time.

If realized, the IPO could mark a turning point not only for Musk’s empire, but for how investors value the intersection of space technology, artificial intelligence, and digital platforms under a single corporate structure.