Chip, a former data scientist at Elon Musk’s SpaceX, is sitting on roughly $3.5 million in company shares. He recently spent it on $10,000 worth of meteorites and a $5,000 fire truck.
The 50-year-old isn’t entirely sure what he’ll do with the truck, maybe use it as an attraction at his 3-year-old’s birthday party. But his new wealth, tied to SpaceX’s initial public offering in June, has given him room to buy what he calls “silly” things, he told Reuters.
Chip, who asked to use only his first name to discuss his finances, has also been eyeing a TAG Heuer Carrera Calibre 1887 SpaceX Chronograph watch priced around $8,000, a piece inspired by NASA astronaut John Glenn’s 1962 orbital mission.
Whether the roughly 440,000 new U.S. millionaires created by last year’s stock market gains and this year’s wave of AI company listings will fuel a new boom for the global luxury goods sector remains an open question. “This industry is competing more and more with other industries and with other buckets of possible expenditures and purchases,” said Federica Levato, a partner at the consultancy Bain & Company.
Fashion brands, already dealing with weak demand in China and cautious consumers worldwide, are hoping tech’s newest millionaires can offer some relief. The personal luxury goods market, valued at €358 billion, or $406 billion, in 2025, has shrunk over the past two years, according to a Bain study released last month.
Still, North America was among the fastest-growing markets in the quarter ending March 31 for luxury groups LVMH, Richemont, Hermès and Kering’s Gucci. Richemont CEO Nicolas Bos told analysts in May that strong sales in the region reflected a high level of consumer confidence in America.
A different kind of buyer
Brands courting tech’s newly wealthy face a different set of tastes and competing priorities that pull attention away from traditional luxury goods. Zack Kass, an AI strategist who led OpenAI’s go-to-market unit until 2023 and holds an undisclosed stake in SpaceX, said his own spending reflects a background in athletics rather than fashion. “I played volleyball in high school and college,” he said. “I literally took my OpenAI winnings and bought a professional sports team,” referring to a volleyball franchise.
Tech employees are gravitating instead toward experiences and wellness, including smartwatches that track steps and calories, said Harrison Colcord, founder of Harrison Lifestyle Concierge.
Robert, a former SpaceX engineer whose shares are worth roughly $4 million, said he and his wife recently bought new Apple Watches as part of a renewed focus on fitness. The couple, who also asked to use only his first name, plans to reinvest most of their new wealth after taking a cruise around Alaska.
Traditional luxury watchmakers still have an opening, though, partly because brands like Rolex and Richemont’s Cartier often carry resale values above retail price, giving them investment appeal beyond status. “You’re not wearing your smartwatch with your tux or your suit,” Colcord said.
The U.S. was the top destination for Swiss watch exports in 2025, accounting for 17% of the global total despite disruption from import tariffs, according to the Federation of the Swiss Watch Industry. Rolex declined to comment, and Richemont did not respond to a request for comment.
Real estate and cars over apparel
Apparel brands face a tougher path, competing with industries well outside traditional luxury for a share of this new spending. Newly wealthy buyers spend about a third less on tailored clothing and leather goods than clients with generational wealth, said Filippo Bianchi, who leads the global luxury team at Boston Consulting Group. Their top priority instead tends to be durable assets like real estate, yachts and cars, he said.
Even so, logo-forward brands like Chanel and Hermès still carry appeal among affluent tech clients, said Mary Gonsalves Kinney, a California-based stylist who works with tech executives.
Chip said he has no plans to buy luxury apparel, aside from a possible upgrade to his outdoor gear. His last jacket purchase came from Goodwill. “I’ve been in T-shirts and shorts for years,” he said. “That’s what I’m comfortable in. I don’t see that changing.”
