Saudi-Backed Humain Invests $3 Billion in Elon Musk's xAI

Saudi Arabia's artificial intelligence company Humain has invested $3 billion into Elon Musk's AI startup xAI, deepening the financial ties between the world's richest man and the Kingdom as it pushes to become a global AI powerhouse.

The Deal

The investment, announced on Wednesday, was part of xAI's $20 billion funding round (Series E), which completed shortly before the startup's acquisition by Musk's space exploration company, SpaceX. With the deal, Humain said it became a "significant minority shareholder" in xAI.

Humain's holdings will convert into SpaceX shares — roughly 0.24% ownership in the new, combined $1.25 trillion company, according to Bloomberg estimates. This makes the Saudi company a stakeholder in one of the world's most valuable private enterprises.

Strategic Context

The deal strengthens Musk's already significant relationship with Saudi Arabia, which has made AI a central plank of its efforts to diversify its economy away from oil under Vision 2030.

Humain, the Riyadh-based AI company created last year by Crown Prince Mohammed bin Salman and backed by the Public Investment Fund (PIF), has been aggressively building Saudi Arabia's AI infrastructure:

• In November 2025, Humain and xAI announced a 500-megawatt data center in Saudi Arabia
• Plans were laid for Saudi Arabia to roll out xAI's Grok AI models across the Kingdom
• Saudi Telecom Co. signed a joint venture agreement with Humain to develop and operate AI-dedicated data centers
• Al Moammar Information Systems was awarded a contract to design and build additional AI data centers

Saudi Arabia's AI Ambitions

The investment comes as Saudi Arabia ranks 5th globally and 1st in the Arab region for AI sector growth, according to the Global AI Index. The Kingdom recently participated in drafting the International AI Safety Report 2026, represented by the Saudi Data and Artificial Intelligence Authority (SDAIA).

With the Global AI Show 2026 set for Riyadh and the recently signed US-Saudi Strategic Artificial Intelligence Partnership, the Kingdom is positioning itself as a major hub for global AI development and infrastructure.

What It Means

The $3 billion investment signals that Gulf states are not just consumers of AI technology but active investors shaping the direction of the global AI industry. As the race for AI dominance intensifies, Saudi Arabia's deep pockets and energy resources make it a strategic partner for AI companies hungry for compute infrastructure and power.

Source: Bloomberg