Riyadh, Saudi Arabia – Elon Musk’s artificial intelligence venture, xAI, has secured $3 billion in fresh funding from Saudi Arabian AI company Humain, marking one of the largest single-ticket investments into a private AI company in recent years.
Okay News reports that the funding forms part of xAI’s broader $20 billion funding round, which closed shortly before the startup was absorbed into SpaceX, Musk’s privately held space exploration company. Following the transaction, Humain becomes a significant minority shareholder in xAI, with its stake set to convert into SpaceX equity after the merger. The investment reinforces the growing influence of Middle Eastern capital in the global technology race.
Humain, a Public Investment Fund company delivering full-stack artificial intelligence capabilities globally, announced the strategic investment as part of xAI’s Series E financing round. The company described the transaction as a significant end-to-end capital deployment reflecting continued momentum in its long-term investment strategy focused on category-defining technology platforms. The investment comes at what Humain called a highly compelling inflection point for xAI, preceding its acquisition by SpaceX in early February.
xAI develops the Grok chatbot and provides AI services integrated into the X social media platform, positioning itself at the intersection of generative AI, real-time data, and social media distribution. In November 2025, Humain and xAI jointly announced plans to build a 500-megawatt data centre in Saudi Arabia, alongside initiatives to deploy xAI’s Grok models across the kingdom. Earlier, in 2024, xAI completed a $6 billion Series B funding round backed by investors including Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Fidelity.
Elon Musk recently disclosed that the combined valuation of SpaceX and xAI stands at approximately $1.25 trillion, showing the strategic importance of AI within his broader business empire. Analysts note that the $3 billion Saudi investment not only strengthens xAI’s balance sheet but also offers access to long-term infrastructure partnerships and sovereign-backed demand for AI deployment. For Saudi Arabia, the deal aligns with its ambition to become a global AI hub as part of its wider economic diversification drive away from oil dependence. Across the Gulf region, sovereign wealth funds in Saudi Arabia, Qatar, Kuwait, and the UAE collectively control more than $4 trillion in assets and are increasingly channeling capital into artificial intelligence.
