Tesla, his public company, has recently surpassed a trillion dollars in market capitalization. (Related: Analysis predicts Elon Musk could become the world's first TRILLIONAIRE by 2027.)
Amid his vocal support for President-elect Donald Trump, two of Musk’s private companies are now set to secure multibillion-dollar jumps in valuation through new deals. At the same time, investors rush to support the varied business interests of the world's richest man.
SpaceX, which is currently the largest private space company in the United States, is gearing up for the launch of a tender offer in December that will sell existing shares in the business at about $135 each, shared people with inside information about the discussions.
This means Musk's rocket builder would be valued at more than $250 billion, up from about $210 billion during a similar deal earlier in 2024.
On the other hand, xAI, Musk's artificial intelligence start-up, has raised $5 billion at a valuation of $45 billion, a figure that is almost double its valuation from only several months ago, added the insiders. The fundraising was carried out quickly, and discussions between Musk and his investors began last month.
The double fundraising follows as the tech billionaire expands his focus beyond Silicon Valley to Washington D.C., especially after helping Trump secure the election and becoming a key confidant to the latter.
Trump recently appointed the Tesla CEO and biotech entrepreneur Vivek Ramaswamy to co-lead the soon-to-be-established Department of Government Efficiency, which will function as an advisory commission and will provide advice and guidance from outside of government.
Musk's ties to Trump boost Tesla's shares
Musk's close ties to Trump have also helped boost the share price of Tesla, the electric vehicle maker that he runs as chief executive, by almost 30 percent since the Nov. 5 elections.
The people close to the xAI fundraising have revealed that the deal had been "fully allocated," or that all of the new shares had been assigned to investors. However, it will not formally close until the end of November.
The insiders have also claimed that the deal was oversubscribed and only included the investors who had backed the start-up in its previous fundraising round.
The growing interest in xAI, which operates Grok, a ChatGPT rival, has also spurred the billionaire's efforts to compete with other rivals like Anthropic and OpenAI.
The move has also resulted in speculation about subsequent fundraising in the first quarter of 2025 that could value xAI at as much as $75 billion, reported two of the people.
But it remains to be seen if this had been communicated directly to investors by xAI.
Musk's startup has been developing a large cluster of 100,000 graphics processing units, the chips used to train and run AI tools, in Memphis.
The project, dubbed Colossus, would be one of the biggest supercomputers in the world. Musk's AI systems could soon play a huge role across his several enterprises, which include Neuralink, SpaceX, Tesla and X.
It's possible that SpaceX would also benefit from Musk's ties to Trump.
Aside from his future goal to launch a mission to Mars, the billionaire wants to add to the company's network of 6,000 low Earth orbit satellites that make up the Starlink broadband network.
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