SpaceX-xAI merger announced: How does the mega deal affect Elon Musk’s net worth?
Elon Musk announced that he will merge SpaceX with his cash-burning artificial intelligence startup xAI in a deal that will value the expanded enterprise at $1.25 trillion.
The deal, which comes amid an effort to prioritize artificial intelligence and space exploration, signals a shift in Elon Musk’s corporate empire.
Musk said SpaceX bought xAI to develop data centers in space, an escape from restrictions on Earth.
According to information reported by Bloomberg and Reuters, citing sources with knowledge of the matter, the deal values SpaceX at $1 trillion and xAI at $250 billion.
How would the SpaceX-xAI merger affect Elon Musk’s net worth?
The SpaceX-xAI merger announced Monday will change the way Elon Musk’s vast fortune is shaped.
Until now, Tesla was the source of the liquid wealth of the world’s richest person. The market value of the electric vehicle manufacturer, which is traded on stock exchanges, is approximately 1.58 trillion dollars. That’s about 26% more than SpaceX’s stated private market valuation ($1.25 trillion). CNBC.
Elon Musk owns about a 43% stake in SpaceX, while Tesla only has a 13% stake. This now means SpaceX represents more than half of Musk’s paper wealth, according to the report. CNBC.
At the time of writing this article, Elon Musk’s net worth was determined to be $852.5 billion, according to the Forbes Real-Time Billionaires Index.
Tesla’s market cap has been falling since the beginning of the year, with the stock down 6% so far in 2026.
On the contrary, SpaceX gives Musk a much stronger market position.
The space company is a leading provider of orbital launch services and has multibillion-dollar agreements and contracts with NASA and the U.S. Department of Defense. Additionally, the SpaceX IPO, scheduled to begin this year, will reportedly value the company even more and increase Musk’s wealth. CNBC reported.
Musk had previously opposed SpaceX’s IPO because he didn’t like the required scrutiny of publicly traded Tesla.
What did Elon Musk say about the SpaceX-xAI merger?
Elon Musk wrote on SpaceX’s website on Monday that the SpaceX-xAI merger would create “the most ambitious, vertically integrated innovation engine on (and off) Earth,” further intertwining their business interests.
He talked about capabilities in “artificial intelligence, rockets, space-based internet, direct-to-mobile communications, and the world’s leading platform for real-time information and free speech.”
Musk called SpaceX’s adoption of xAI “not just the next chapter, but the next book” and said the company’s “mission” is to “create a sentient sun.”
