Two of Elon Musk’s private companies are set for massive valuation jumps, according to insiders, as investors continue to show strong support for the ventures of the world’s richest man, reports the Financial Times.
SpaceX, the largest private company in the U.S., plans to sell shares in December at $135 each. This would raise its valuation to more than $250 billion, up from $210 billion earlier this year, according to sources familiar with the deal. The next frontier for SpaceX is getting to Mars, which is funded by the growing Starlink satellite internet constellation.
Musk’s AI start-up, xAI, recently raised $5 billion, valuing the company at $45 billion—almost double what it was worth just a few months ago. Discussions for this funding reportedly began only last month, and all the shares were quickly snapped up by existing investors.
xAI develops Grok, an AI tool competing with popular systems like ChatGPT, and is working on one of the world’s largest supercomputers, called Colossus, in Memphis.
There’s already talk of another xAI funding round early next year, which could value the company at $75 billion, sources said.
Musk’s recent ties to Donald Trump may also be helping his businesses. Trump named Musk and biotech entrepreneur Vivek Ramaswamy to head a new “government efficiency” department aimed at cutting bureaucracy.
Since Trump’s election win on November 5, Tesla’s stock price has surged by nearly 30%. Musk is seen as a close adviser to Trump, which some believe could benefit SpaceX in securing government deals.