Elon Musk’s xAI secures $3bn from Saudi AI firm Humain

Humain, Saudi Arabia’s state-backed artificial intelligence (AI) firm, has invested $3 billion in xAI, the startup founded by Elon Musk. 

The investment strengthens financial ties between the kingdom and the billionaire entrepreneur as competition in the global AI race intensifies.

The Riyadh-based company, established last year by Mohammed bin Salman, said it made the investment shortly before Musk revealed that xAI would merge with SpaceX. 

The combined entity is reportedly valued at more than $1 trillion. Humain described itself as a significant minority shareholder in xAI, adding that its stake has since been converted into shares of SpaceX.

The timing of the deal could prove financially advantageous. Musk is reportedly considering an initial public offering of the merged company later this year, a move that could boost the value of Humain’s holdings.

The agreement also gives Saudi Arabia exposure to a major US government contractor. 

SpaceX launches military and intelligence satellites and operates Starlink, a satellite internet network that has played a key role in Ukraine’s defense communications.

Saudi Arabia has been expanding its investments in AI as part of broader economic diversification efforts. 

Backed by the kingdom’s sovereign wealth fund, Humain is building advanced data centers, forming partnerships with global technology companies, and investing in AI startups to position the country as a growing hub for AI development and infrastructure.