Saudi company Humain, backed by the sovereign wealth fund, has announced a $3 billion investment in xAI, Elon Musk's artificial intelligence startup. The transaction was finalized as part of a Series E funding round, just before the announcement of xAI's merger with SpaceX. This investment makes Humain a significant minority shareholder, and its shares will ultimately be converted into SpaceX stock, strengthening technological cooperation between Riyadh and the billionaire.

Billion-Dollar Cash Injection

Saudi company Humain invested $3 billion in the startup xAI as part of a Series E funding round.

Merger with SpaceX

Shares in xAI will be converted into SpaceX stock, following the planned merger of both entities owned by Musk.

Strategic Infrastructure

The cooperation includes the construction of a data center with a capacity of 500 MW in Saudi Arabia, aimed at developing local AI.

Saudi company Humain, controlled by the Public Investment Fund (PIF), has finalized a massive $3 billion investment in the startup xAI, founded by Elon Musk. This decision came at a crucial moment, just before the formal merger of xAI with the company SpaceX. Through this operation, the Saudi entity has become a significant minority shareholder, and its financial involvement will be transformed into shares of the space industry giant. This move demonstrates the growing ambitions of Saudi Arabia in the high-tech sector and its desire to diversify the national economy. Elon Musk's relations with the Kingdom of Saudi Arabia date back to 2018, when the local sovereign wealth fund considered supporting the privatization of Tesla, which ultimately led to high-profile lawsuits in the US.This cooperation is not limited to capital transfer. As early as November last year, both companies announced plans to build a huge 500-megawatt data center in Saudi Arabia. This project aims to support the development of language models, such as Grok, and adapt them to the cultural and linguistic specifics of the Arab region. Saudi-Backed Humain, founded by Crown Prince Mohammed bin Salman, thus becomes one of Musk's most important partners in the global AI arms race. 3 billion USD — value of the investment in startup xAI Analysts emphasize that combining the resources of xAI with the structures of SpaceX creates a unique technological conglomerate where artificial intelligence algorithms can be directly used in space navigation and Starlink satellite communication systems. The investment from Riyadh comes during the Series E phase, indicating a very high valuation of Musk's company. While the transaction strengthens the startup's financial position, it also raises questions about the impact of foreign capital on key U.S. dual-use technologies. „Artificial intelligence will be the most disruptive force in history, and this investment will accelerate our mission to understand the universe.” — Elon Musk Key Investment Steps by Humain and xAI: — ; — ; —

Mentioned People

  • Elon Musk — Founder of xAI, SpaceX, and Tesla, aiming to integrate his AI technologies with the space industry.
  • Mohammed bin Salman — Crown Prince of Saudi Arabia, initiator of the establishment of the company Humain and the economic diversification strategy.