Mumbai, February 19: Humain, the national artificial intelligence company of Saudi Arabia, has announced a USD 3 billion investment in Elon Musk’s xAI. The capital infusion was part of a Series E funding round completed just before xAI was officially acquired by SpaceX, marking a significant consolidation of Musk’s technology ventures.

The investment establishes Humain as a significant minority shareholder. Following the acquisition, Humain’s holdings in xAI have been converted into shares of SpaceX. The move aligns with the Kingdom of Saudi Arabia’s broader strategy to reduce its economic dependence on oil by becoming a global leader in compute capacity and emerging technologies. Perplexity AI Abandons Advertising Strategy To Preserve User Trust and Prioritise Subscription Models.

Strategic Partnership and Data Centre Infrastructure

The investment follows a formal partnership established between Humain and xAI in November 2024 during the United States-Saudi Investment Forum. As part of that agreement, both entities committed to the joint development of 500 megawatts of artificial intelligence data centre infrastructure within the Kingdom.

This infrastructure is critical for xAI as it seeks to compete with industry leaders such as OpenAI and Anthropic. By securing substantial power and cooling resources in Saudi Arabia, xAI aims to accelerate the training and deployment of its large language models, leveraging the Kingdom’s growing role as a hub for international digital infrastructure.

Funding Success and SpaceX Consolidation

In January, xAI successfully raised USD 20 billion in an upsized Series E funding round, reflecting high investor confidence despite intense competition in the sector. Shortly after this capital raise, Elon Musk integrated the AI startup into SpaceX, a move designed to create synergies between advanced machine learning and space exploration technology. OpenAI Partners With IIT Delhi, IIM Ahmedabad and Other Top Indian Institutes To Build AI-Ready Talent Pipeline.

The merger is expected to streamline operations across Musk’s portfolio, providing xAI with the robust engineering and capital resources of the aerospace giant. For Saudi Arabia, the deal represents a high-profile entry into the SpaceX cap table, further strengthening the financial ties between the Kingdom and Musk’s multi-industry technological ecosystem.

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(The above story first appeared on LatestLY on Feb 19, 2026 10:50 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).