Tesla CEO Elon Musk has become the first individual in history to achieve a net worth exceeding USD 800 billion, following the merger of his aerospace company SpaceX with artificial intelligence firm xAI. According to Forbes estimates, Musk’s fortune reached approximately USD 852 billion after the transaction was announced on 2 February 2026, valuing the combined entity at USD 1.25 trillion.
The merger represents the largest private company consolidation on record and widens the wealth gap between Musk and the world’s second-richest individual to an unprecedented USD 578 billion.
Key Details of the SpaceX-xAI Transaction
SpaceX officially acquired xAI through a share exchange structure announced via a blog post signed by Musk on the company’s website on 2 February 2026. The deal converted each xAI share into 0.1433 shares of SpaceX stock.
Before the merger, SpaceX was valued at USD 800 billion following a secondary share sale in December 2025, whilst xAI was valued at approximately USD 250 billion after completing a USD 20 billion funding round in January 2026, according to documents reviewed by financial news agencies.
The combined entity is now valued at USD 1.25 trillion, with SpaceX accounting for USD 1 trillion and xAI contributing USD 250 billion, as reported by Bloomberg and Reuters citing company documents.
Musk’s ownership stake in the merged company stands at approximately 43 per cent, worth around USD 542 billion, according to Forbes calculations. Before the merger, he held roughly 42 per cent of SpaceX (valued at USD 336 billion) and 49 per cent of xAI (valued at USD 122 billion).
Strategic Rationale: Space-Based Data Centres
In the official announcement, Musk stated the merger would create “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform.”
The primary strategic objective, according to Musk’s blog post, is to develop orbital data centres. “Current advances in AI are dependent on large terrestrial data centres, which require immense amounts of power and cooling,” Musk wrote. “Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term.”
SpaceX filed with the Federal Communications Commission (FCC) requesting authorisation to launch up to one million satellites as part of its orbital data centre programme, according to TechCrunch. Musk estimated that “within two to three years, the lowest cost way to generate AI compute will be in space.”
Musk’s Wealth Composition and Growth Trajectory
According to Forbes, Musk’s USD 852 billion net worth comprises:
- SpaceX-xAI combined stake: USD 542 billion (approximately 43 per cent ownership)
- Tesla shares: USD 178 billion (approximately 12 per cent ownership)
- Tesla stock options: USD 124 billion
These figures exclude Musk’s performance-based Tesla compensation package approved by shareholders in November 2025, which could grant up to USD 1 trillion in additional stock if specific milestones are achieved over the next decade, including increasing Tesla’s market capitalisation eightfold.
Musk’s wealth accumulation has accelerated dramatically in recent months. According to Forbes data cited by Wikipedia, he became:
- The first person worth USD 500 billion in October 2025
- The first person worth USD 600 billion in mid-December 2025, following SpaceX’s valuation doubling from USD 400 billion
- The first person worth USD 700 billion days later, after a Delaware Supreme Court decision restored his Tesla stock options
- The first person worth USD 800 billion in February 2026
Wealth Gap and Global Context
Musk’s net worth of USD 852 billion places him USD 578 billion ahead of the world’s second-wealthiest individual, Google co-founder Larry Page, whose fortune is estimated at USD 281 billion by Forbes.
To contextualise this gap, Musk’s wealth advantage over the second-richest person exceeds the individual net worth of every other billionaire globally except Page himself, according to financial analysts.
Previous Consolidations and Business Empire
This marks the second major merger involving Musk’s companies within a year. In March 2025, xAI acquired X (formerly Twitter), the social media platform Musk purchased in 2022, in a transaction that valued xAI at USD 80 billion and X at USD 33 billion.
Musk founded SpaceX in 2002 and serves as its CEO and chief engineer. The company has become the leading provider of orbital launch services through contracts with NASA and the US Department of Defence, and operates the Starlink satellite internet service with over 9,000 satellites in orbit and approximately 9 million customers.
He launched xAI in 2023 as a competitor to OpenAI, the company he co-founded in 2015 but departed from in 2018. xAI develops the Grok AI chatbot and large language models.
Musk also serves as CEO of Tesla, the electric vehicle manufacturer, and leads Neuralink (neurotechnology) and The Boring Company (infrastructure).
Financial Performance and Challenges
Reuters reported that SpaceX generated an estimated USD 8 billion in profit on USD 15 billion to USD 16 billion of revenue in 2025, citing people familiar with the company’s results. Approximately 80 per cent of SpaceX’s revenue comes from launching its own Starlink satellites, according to Reuters.
xAI faces different financial dynamics. Bloomberg reported the company is currently spending approximately USD 1 billion per month as it races to build infrastructure to compete with established AI firms including OpenAI (valued at USD 500 billion in October 2025) and Anthropic (valued at USD 350 billion in a recent funding term sheet).
What Happens Next
SpaceX is preparing for an initial public offering (IPO) potentially as early as mid-2026, according to multiple news reports. The IPO could raise up to USD 50 billion and value the company at approximately USD 1.5 trillion, though these figures may change following the xAI merger.
The transaction may require regulatory review, including potential examination by the Committee on Foreign Investment in the United States (CFIUS), though company executives have not confirmed whether such reviews are underway.
xAI is currently facing regulatory investigations in multiple jurisdictions internationally after its Grok AI tool enabled users to generate sexualised images, including of minors and non-consensual intimate images of adults, primarily women, according to multiple news reports.
Democratic senators have called for a Pentagon investigation into SpaceX over reportedly undisclosed Chinese investors in the company.
Path to Trillionaire Status
Financial analysts suggest that if Tesla achieves the milestones outlined in Musk’s performance-based compensation package, or if the SpaceX IPO successfully values the company at USD 1.5 trillion or higher, Musk could become the world’s first trillionaire, potentially as early as late 2027 or 2028, according to various financial projections.
For Musk to reach USD 1 trillion in net worth based solely on current holdings (assuming Tesla shares remain flat), SpaceX would need to reach a valuation of approximately USD 1.6 trillion.