Saudi AI firm invests $3 billion in Elon Musk’s xAI

Saudi Arabia’s artificial intelligence company Humain announced on Wednesday a $3 billion investment in Elon Musk’s xAI, underscoring the kingdom’s growing ambitions in advanced technologies.

Humain will become a “significant minority shareholder” in xAI, according to a company statement. The acquired stake has been converted into shares of SpaceX, following the recent merger between xAI and Musk’s space company. Founded in 2023 to compete with OpenAI, xAI is preparing for a potential stock market listing as early as this summer.

The two firms had already partnered in November to develop a data center exceeding 500 megawatts in Saudi Arabia. Humain has also strengthened ties with U.S. chipmaker Nvidia after Washington approved the sale of advanced microprocessors to Riyadh.

Established in May 2025, Humain is majority-owned by Saudi Arabia’s Public Investment Fund (PIF), the sovereign wealth fund driving the kingdom’s economic diversification under Vision 2030. 

The investment comes at a time of lower oil prices and growing questions over the pace and scale of the country’s mega-projects, including the futuristic city of Neom and luxury developments along the Red Sea coast.

Musk has framed the merger between xAI and SpaceX as part of a broader vision, including plans to deploy AI-focused satellite manufacturing facilities on the Moon and space-based data centers to expand computing capacity.

The deal signals Saudi Arabia’s determination to position itself as a major player in the global AI race, even as it recalibrates elements of its long-term development strategy.