Saudi Arabia’s state-backed artificial intelligence firm HUMAIN has invested $3 billion in Elon Musk’s xAI as part of the company’s Series E financing round, expanding the kingdom’s push into advanced artificial intelligence and digital infrastructure.
HUMAIN, backed by the Public Investment Fund (PIF), said the transaction makes it a significant minority shareholder in xAI and represents a large-scale capital deployment into what it described as a category-defining technology platform.
The investment was made ahead of xAI’s acquisition by SpaceX in early February, with HUMAIN’s stake subsequently converted into shares in SpaceX, providing exposure to the combined entity’s long-term growth.
The deal comes at a pivotal stage for xAI as the integration with SpaceX brings together artificial intelligence development with large-scale infrastructure and engineering capabilities, positioning the platform for accelerated expansion and deeper technological integration.
HUMAIN Chief Executive Tareq Amin said the investment reflects the company’s strategy of backing transformational technologies with long-term capital, particularly where technical innovation and execution capacity align.
The transaction builds on a broader partnership announced in November 2025, under which HUMAIN and xAI agreed to jointly develop more than 500 megawatts of next-generation AI data centre and compute infrastructure and deploy xAI’s Grok models in Saudi Arabia.
The investment underscores Saudi Arabia’s broader efforts to expand its role in frontier technologies and localise high-performance computing capacity as part of its economic diversification strategy.
HUMAIN said it plans to pursue additional investments across artificial intelligence, advanced infrastructure and other emerging technology sectors as it positions itself as a global full-stack AI platform spanning data centres, cloud infrastructure, models and industry solutions.
Business News Asia