Elon Musk becomes first person ever worth over $800 billion

Elon Musk has become the first person in history to amass a net worth of $800 billion or more after his rocket company SpaceX acquired his artificial intelligence and social media firm xAI.

Forbes estimates the transaction, which values the combined entity at $1.25 trillion, increased Musk’s fortune by $84 billion, lifting it to a record $852 billion, News.Az reports. 

Prior to the deal, Musk held an estimated 42% stake in SpaceX valued at $336 billion, based on a tender offer launched in December that priced the privately held company at $800 billion. He also owned about 49% of xAI, worth an estimated $122 billion following a private fundraising round earlier this month that valued the company at $250 billion. After the merger—which values SpaceX at $1 trillion and xAI at $250 billion—Forbes estimates Musk now controls a 43% stake in the combined company, valued at $542 billion.

The transaction makes SpaceX Musk’s most valuable asset by a wide margin. He also holds a 12% stake in Tesla worth approximately $178 billion, along with Tesla stock options valued at another $124 billion. These figures do not include the unprecedented compensation package approved by Tesla shareholders in November, which could grant Musk up to $1 trillion in additional stock—before taxes and other costs—if the company meets ambitious long-term performance targets, including an eightfold increase in market capitalization over the next decade.

This marks the second merger involving Musk’s companies in less than a year. In March, he announced the combination of his artificial intelligence firm xAI and his social media platform X, formerly known as Twitter, in a deal that valued xAI at $80 billion and X at $33 billion, roughly matching the price Musk paid for Twitter in 2022 excluding debt. Musk’s dual role as buyer and seller in these transactions has raised questions about the valuations involved. However, with all of these businesses now under the SpaceX umbrella—and with the company expected to pursue an initial public offering later this year—their valuations are likely to come under public market scrutiny.

News.Az 

By Nijat Babayev