Saudi Firm Invests $3 Billion in xAI Before SpaceX Deal

Saudi Arabia's state-backed artificial intelligence firm, Humain, announced a $3 billion investment in Elon Musk's xAI on Wednesday, a move that positions the kingdom as a significant minority shareholder in the AI startup just before its acquisition by Musk's rocket company, SpaceX.

The investment occurred as part of xAI's upsized Series E funding round, which raised $20 billion in January. According to Humain's statement, the stake in xAI was converted into shares in SpaceX following the acquisition, which combined the AI venture with the space firm to create a business valued at more than $1 trillion. Officials at Humain indicated that the timing could yield substantial returns, as Musk is planning an initial public offering for the merged entity later this year.

Humain, established last year in Riyadh under the chairmanship of Crown Prince Mohammed bin Salman and supported by the kingdom's sovereign wealth fund, aims to advance Saudi Arabia's capabilities in artificial intelligence. The company is focused on constructing data centers, developing chatbots and investing in AI technologies, leveraging the country's abundant financial resources and low-cost electricity. This...