Elon Musk had a Memorial Day Weekend to remember, as he announced that his artificial intelligence startup xAI had raised $6 billion at an $18 billion pre-money valuation. This pushed Musk past Bernard Arnault to once again become the world’s richest person, with a net worth estimated at $209.5 billion. Jeff Bezos fell to third place with a fortune of approximately $200 billion. Musk launched xAI last July, known for its Grok chatbot, to compete with ChatGPT creator OpenAI, which Musk cofounded in 2015. Musk sued OpenAI in March, claiming its pursuit of profits deviated from its original mission of developing open-source artificial general intelligence to benefit humanity.
Forbes estimates that Musk owns a 60% stake in xAI valued at $14.4 billion following the recent funding round. The financing was led by investors who also supported Musk’s $44 billion takeover of Twitter, now renamed X. His other major assets include his nearly 12% stake in Tesla and estimated 42% stake in SpaceX, each worth around $75 billion. Forbes also estimates Musk’s 74% stake in his social media company is now worth approximately $7 billion, nearly 70% less than what he paid for it in 2022. Musk invited engineers to join xAI if they believe in the company’s mission of understanding the universe with a rigorous pursuit of truth, regardless of popularity or political correctness.
Tesla’s stock fluctuations and SpaceX’s rising shares have alternately propelled Musk to the world’s richest spot in recent years. Arnault briefly overtook Musk in late January when a Delaware judge invalidated nearly $50 billion in performance-based Tesla stock options granted to Musk in 2018. The ruling deemed the award process unfair due to insufficient proof provided by Musk and certain Tesla board members. Tesla shareholders will vote on the reapproval of Musk’s options, discounted by Forbes following the Delaware ruling, on June 13. Additionally, SpaceX is considering a tender offer that could value the company at around $200 billion, up from $180 billion as of last December. This suggests that Arnault’s reign at the top of the wealth rankings may soon be challenged.
Musk’s ongoing legal battle with OpenAI stems from his belief that the organization has strayed from its original mission, focusing more on profits than developing open-source artificial general intelligence for the greater good. Musk’s xAI announced the release of an open-source version of its Grok chatbot as part of its recent achievements. The startup’s success has propelled Musk back to the top of the wealth rankings, overtaking Arnault and Bezos. Musk’s involvement in various ventures, including Tesla, SpaceX, xAI, and X (formerly Twitter), has solidified his position as the world’s richest individual, with a net worth exceeding $200 billion.
Musk’s success with xAI’s recent funding round, alongside the potential reevaluation of his Tesla stock options and the increased value of SpaceX through a potential tender offer, have all contributed to his rising wealth. His significant stakes in Tesla, SpaceX, and xAI form the cornerstone of his financial empire. Despite setbacks with his social media company, Musk’s overall portfolio includes assets worth billions of dollars. His continuous quest for innovation and exploration in various fields, including artificial intelligence and space technology, has propelled him to the forefront of global wealth rankings. With promising developments on the horizon for both xAI and SpaceX, Musk’s position as the world’s richest individual appears secure for the foreseeable future.
