Emmanuel OchayiElon Musk reclaimed the title of the world’s richest person during Memorial Day weekend by announcing that his new AI startup, xAI, raised $6 billion at a pre-money valuation of $18 billion.
This significant funding pushed Musk’s net worth to $209.2 billion, surpassing Bernard Arnault’s $199.3 billion and making Musk the richest person in the world. Jeff Bezos holds the second spot with an estimated $199.9 billion as of May 30, 2024.
Join our WhatsApp ChannelMusk’s fortune saw a considerable boost due to his 60% stake in xAI, which Forbes now values at $14.4 billion following a recent deal involving investors from his $44 billion Twitter acquisition (now renamed). Commenting on the achievement, Musk said, “This is just the beginning for xAI. We’re aiming to revolutionize the AI industry.”
Musk’s wealth is largely tied to his nearly 12% stake in Tesla and a 42% stake in SpaceX. As of Tuesday’s market close, each stake is valued at approximately $75 billion. However, Forbes estimates the value of Musk’s 74% stake in his social media company has dropped to around $7 billion, nearly 70% less than its 2022 purchase price.
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Tesla’s fluctuating stock price and rising SpaceX stock have kept Musk and Arnault in a close contest for the world’s top spot. In late January, a Delaware judge invalidated nearly $50 billion in performance-based Tesla stock options granted to Musk in 2018, ruling the award process was unfair.
Tesla shareholders will vote on reapproving Musk’s options, which Forbes reduced by 50% after the ruling, on June 13. Meanwhile, SpaceX is reportedly aiming for a valuation of $200 billion, up from $180 billion last December.
Forbes Real Time Billionaire Index, updated on May 30, reflects Musk’s new standing. The top 10 billionaires are as follows:
- Elon Musk — $209.2 billion
- Jeff Bezos — $199.9 billion
- Bernard Arnault — $199.3 billion
- Mark Zuckerberg — $166.4 billion
- Larry Ellison — $153.2 billion
- Larry Page — $145.5 billion
- Sergey Brin — $139.4 billion
- Warren Buffett — $133.0 billion
- Bill Gates — $129.8 billion
- Steve Ballmer — $126.5 billion
Discussing the impact of xAI, an analyst commented, “Musk’s ability to attract massive investments for his ventures continues to astonish the market. xAI’s $6 billion funding round is a testament to the confidence investors have in his vision.”
With Musk back on top, the dynamics of the billionaire rankings remain fluid, especially as market conditions and company valuations shift. Tesla’s upcoming shareholder vote and SpaceX’s ambitious valuation goals will be crucial in maintaining Musk’s position. As the billionaire competition heats up, Musk’s ventures continue to shape the future of technology and industry.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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