SpaceX-xAI merger announced: How does the mega deal affect Elon Musk's net worth?

By Admin

04 Feb, 2026

Introduction
Elon Musk has announced a landmark merger between his space exploration company SpaceX and his artificial intelligence venture xAI. The deal, which values the combined entity at an astonishing $1.25 trillion, marks a major shift in Musk’s corporate strategy as he doubles down on artificial intelligence and space-based innovation. Beyond its technological ambition, the merger is set to significantly reshape how Musk’s immense personal wealth is structured.

Overview of the SpaceX–xAI Merger
The merger comes at a time when Musk is prioritising long-term, high-impact technologies over short-term market sentiment. According to reports by Bloomberg and Reuters, SpaceX is acquiring xAI in a transaction that values SpaceX at $1 trillion and xAI at $250 billion. Musk has stated that the integration will help develop data centres in space, allowing AI systems to operate beyond the physical and regulatory constraints of Earth.

A Strategic Shift in Musk’s Business Empire
This deal signals a clear evolution within Musk’s business empire. While Tesla has long been the most visible pillar of his wealth, the merger highlights a growing emphasis on private, capital-intensive ventures with futuristic goals. By folding xAI into SpaceX, Musk is aligning artificial intelligence development directly with space infrastructure, creating a tightly integrated platform that spans AI, rockets, satellite internet, and communications.

Impact on Elon Musk’s Net Worth
The SpaceX–xAI merger will change how Musk’s vast wealth is distributed across his companies. Until now, publicly listed Tesla has been the main source of his liquid wealth. Tesla currently has a market capitalisation of about $1.58 trillion, roughly 26% higher than SpaceX’s private valuation of $1.25 trillion, according to CNBC.

However, Musk owns around 43% of SpaceX, compared to only about 13% of Tesla. As a result, SpaceX now represents more than half of Musk’s paper wealth. At the time of writing, the Forbes Real Time Billionaires Index pegged Musk’s net worth at $852.5 billion, underscoring how central SpaceX has become to his financial standing.

Tesla vs SpaceX: Diverging Market Trajectories
Tesla’s market value has been under pressure, with its stock down around 6% so far in 2026. This decline has reduced the relative contribution of Tesla to Musk’s overall wealth. In contrast, SpaceX offers a stronger and more stable long-term position. The company is one of the world’s leading providers of orbital launch services and holds billions of dollars in contracts with NASA and the United States Department of Defense.

Adding to this momentum, a SpaceX IPO is reportedly planned for later this year. Market expectations suggest that a public listing could value the company even higher, potentially pushing Musk’s net worth further upward. Musk had previously resisted taking SpaceX public, citing his discomfort with the scrutiny he experienced as the head of a publicly traded Tesla.

What Elon Musk Said About the Merger
In a statement published on the SpaceX website, Musk described the merger as a step toward building “the most ambitious, vertically-integrated innovation engine on (and off) Earth.” He highlighted combined capabilities in artificial intelligence, rockets, space-based internet, direct-to-mobile communications, and what he called the world’s foremost real-time information and free speech platform.

Musk characterised SpaceX’s absorption of xAI as “not just the next chapter, but the next book” in the companies’ shared mission. He framed the long-term vision in characteristically bold terms, saying the goal is to “make a sentient sun,” reflecting his belief in the transformative potential of AI integrated with space infrastructure.

Conclusion
The SpaceX–xAI merger is more than a corporate reshuffle; it represents a fundamental rebalancing of Elon Musk’s empire and wealth. As Tesla faces market headwinds, SpaceX’s growing dominance now amplified by AI capabilities positions it as the primary driver of Musk’s net worth in the years ahead. With a potential IPO on the horizon and expanding government and commercial contracts, the mega deal could further cement Musk’s status at the top of the global wealth rankings while pushing the boundaries of technology beyond Earth itself.