The Saudi Public Investment Fund (PIF) subsidiary, "HUMAIN", specializing in artificial intelligence technologies, announced on Wednesday a massive strategic investment of $3 billion in "xAI", the AI startup founded by American billionaire Elon Musk.
This investment comes as part of the Series E funding round for "xAI", which totaled about $20 billion and was completed in January 2026, just a few weeks before Musk announced his company, "Space,X" had fully acquired "xAI" in early February of this year.
Under the deal, "HUMAIN" became a major minority shareholder in "xAI", and its stake was automatically converted into shares in "SpaceX" upon completion of the merger.
According to estimates from Bloomberg and other sources, this amounts to about 0.24% of the new merged entity's total market value, which exceeded $1.25 trillion, making this step one of the most prominent Saudi investments in the global technology sector recently.
The CEO of "HUMAIN", Tarek Amin, confirmed in an official statement published on the X platform: "We are proud of this investment which reflects our deep confidence in the transformative power of artificial intelligence, and affirms our role as a long-term investor in exceptional technology opportunities".
This investment builds on a previous partnership announced in November 2025 during the Saudi-American Investment Forum, where "HUMAIN" and "xAI" agreed to develop an AI infrastructure capable of exceeding 500 megawatts in the Kingdom, including advanced data centers and the local deployment of "xAI"'s "Grok" models.
This merger between "xAI" and "SpaceX" is considered a major strategic step for Elon Musk, aiming to integrate artificial intelligence capabilities with space exploration, including the construction of giant solar-powered data centers in space in the future. For its part, Saudi Arabia is enhancing its position as a global center for artificial intelligence through "HuMain," - which was established last year under the direction of Crown Prince Mohammed bin Salman, as part of Vision 2030 to diversify the economy away from oil.
The deal reflects the growing ties between Musk and the Kingdom, and consolidates Saudi Arabia's role as a major player in the global artificial intelligence race, alongside previous investments in companies such as "OpenAI" and others. This step is expected to open new horizons for technological cooperation between the United States and the Middle East in the coming years.
