An artificial intelligence firm owned by Saudi Arabia’s Public Investment Fund, Humain, invested $3 billion in Elon Musk’s xAI just before the startup was acquired by SpaceX.
According to a press release, Humain became a large minority shareholder in the company as part of the Series E round of xAI, which was later converted into SpaceX shares.
The deal signifies the bigger initiative by PIF to establish Saudi Arabia as a hub in the global AI ecosystem, as a diversification strategy of Vision 2030.
The fund is also pursuing capital deployment and infrastructure development through Humain, alliances with major technology companies, and domestic capacity building to decrease dependence on oil incomes and diversify into developed sectors.
The commitment is valued at $3 billion, which offers long-term capital returns and strengthens the company as a strategic, scaled investor in transformative technologies.
CEO Tareq Amin said, “This investment reflects Humain’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital.”
The acquisition is based on a massive partnership unveiled in November at the US-Saudi Investment forum, in which Humain and xAI intend to deploy more than 500 megawatts of next-generation artificial intelligence data center and computing infrastructure, as well as implement xAI’s Grok models in the Kingdom.
In a post on his X handle, Amin added, “I’m proud to share that Humain has invested $3 billion into xAI’s Series E round, just before its historic acquisition by SpaceX. Through this transaction, Humain became a significant minority shareholder in xAI.”
He stated, “The investment builds on our previously announced 500MW AI infrastructure partnership with xAI in Saudi Arabia, reinforcing Humain’s role as both a strategic development partner and a scaled global investor in frontier AI.”
He indicated that the path of xAI, which was solidified with the acquisition of SpaceX, is the manifestation of high-impact platforms that Humain seeks to fund with strategic investments.
SpaceX made the acquisition of xAI, indicating the intention of Elon Musk to incorporate space exploration with AI earlier in February.
Bloomberg reported that the merged company, with a valuation of $1.25 trillion, is focused on creating a vertically integrated ecosystem of innovations in AI, space launch technology, and satellite internet, along with direct-to-device communications and real-time information platforms.
Humain was established in August and consolidates Saudi Arabia’s AI initiatives under a single entity. Since its founding, the company has not only been involved in the domestic markets but has spread out its vision to the global AI value chain between infrastructure and applications.
The company is one of the strategic programs of PIF to diversify the economy of the Kingdom and minimize the dependency on oil through investing in advanced knowledge and technologies.
