Elon Musk’s announcement that SpaceX and his artificial‑intelligence company xAI have merged has produced not just a corporate reshuffle but a fresh benchmark in personal wealth. Forbes estimated the transaction added roughly $84 billion to Musk’s fortune, lifting his net worth to about $852 billion and making him the first individual to top the $800 billion mark; Forbes’ live tracker showed a close figure of roughly $841 billion on February 5.
The deal, disclosed on SpaceX’s website on February 2 in a statement signed by Musk, merges rocket engineering, satellite internet and AI under one roof. The combined group is being pitched to investors at an aggregate valuation near $1.25 trillion — with SpaceX valued at about $1 trillion and xAI at around $250 billion — and Musk is thought to own roughly 43% of the merged company, a stake Forbes pegs at about $542 billion in value.
This transaction follows a rapid sequence of value re‑ratings for Musk’s assets. Last year xAI acquired the social platform X (formerly Twitter) for about $33 billion; SpaceX’s valuation has climbed sharply in private rounds and is reportedly preparing for an eventual initial public offering. Tesla, meanwhile, remains central to Musk’s balance sheet: he held more than 12.4% of Tesla as of mid‑September, and swings in Tesla’s share price have repeatedly produced large moves in his headline net worth.
Beyond the headline figure, the merger signals a deeper strategic convergence. Bringing together orbital launch and satellite broadband with advanced AI creates the technical possibility of tightly integrated services — from space‑based compute and data collection to AI agents that leverage low‑latency satellite links and bespoke hardware. That combination appeals to commercial customers and governments alike and helps explain the lofty private valuations.
The near‑term financial question is whether the merged company can execute an IPO that satisfies both regulators and index providers. Media reports indicate SpaceX advisers have already opened talks with major index vendors, including Nasdaq, seeking exemptions or policy changes that would speed index inclusion and therefore provide liquidity for private shareholders. The company is said to be engaging non‑US banks to broaden underwriting capacity and to present a governance structure designed to preserve Musk’s control while attracting institutional capital.
Such ambitions will collide with practical and political constraints. A public listing large enough to matter to global indices would invite heightened regulatory scrutiny — from securities authorities over valuation and shareholder rights, and from national security agencies over the export of dual‑use technologies and foreign supply chains. The unusual combination of space systems and advanced AI could trigger concerns in multiple jurisdictions at a time when governments are tightening rules around critical technology.
Investors and markets will also have to reconcile private valuations with public comparators. SpaceX’s private rounds and pro forma math that assigns $1 trillion to SpaceX and $250 billion to xAI rest on optimistic revenue and margin assumptions for nascent markets such as satellite broadband, space logistics and monetised AI services. If an IPO proceeds, the deal structure and any changes to index admission criteria will shape the timing and scale of liquidity for early investors and for Musk himself.
Finally, the consolidation underscores a broader trend: the growing entanglement of platform‑scale AI capabilities with infrastructure providers. If Musk’s merged company succeeds in delivering vertically integrated services at scale, it will reshape competitive dynamics in both the AI and aerospace sectors. If it stumbles, the high valuations and concentrated ownership will create large writedowns and political fallout, demonstrating the asymmetric risks inherent in bets on hyper‑scale entrants.