The 'Hello Good Morning' rapper beat Jay-Z â who has an estimated wealth of $450 million - to claim the top spot in a list compiled by Forbes magazine.
The rapper and producer's wealth is fuelled by his Sean John clothing brand, Bad Boy Worldwide record label and his vodka brand Ciroc - a joint venture with drinks brand Diageo â which generates his largest profit.
Diddy â who has humble Roots - recently splashed out on his son, Justin, buying him a £250,000 limousine for becoming an Honours student, but insists none of his seven children are spoiled by wealth.
He said: "Justin has turned himself around so I wanted to treat him. Maybe he will use the car for special occasions like on a first date, but like all my kids, he prefers the simpler things than the expensive things. Simple tastes."
Although Diddy has the most accumulated wealth, Jay-Z was the highest earning hip-hop star of 2010, making some $63 million â more than double the $30 million taken by Diddy.
Jay-Z's accumulated wealth is from his 50 million album sales, tour revenue, 40/40 nightclub chain and a stake in the Basketball team New Jersey Nets.
Third on the list was producer Dr. Dre, with $125 million, although his net worth is expected to increase when he makes a comeback this year.
Forbes Magazine's five wealthiest artists:
1. P. Diddy
3. Dr. Dre
4. = 50 Cent
5. = Bryan 'Birdman' Williams
Essentially this year's Moneyball, but set in American football rather than baseball, this fast-paced drama...
Kermit and friends are set to go international with the help of their unfortunately named...
Sonny Weaver, Jr. is the general manager of National Football League team the Cleveland Browns...
Kermit and friends return, embarking on an extensive world tour that sees them reach all...
Kermit the Frog, Miss Piggy, Animal and friends are up to their usual tricks as...