The Oman Investment Authority (OIA), the sultanate’s sovereign wealth fund, has acquired a stake in xAI, the artificial intelligence company founded by Elon Musk, the world’s richest man.
The deal was announced on Wednesday by the Omani state news agency but the size of the investment was not disclosed.
Musk, who is worth around $486 billion, says he plans to use the new venture to develop advanced AI models with practical applications, complementing Oman’s efforts to position itself as a regional leader in the sector.
In August Oman unveiled a draft National Artificial Intelligence Policy that aims to provide a framework for the development and deployment of AI technologies. It is part of the government’s plan to increase the digital economy’s contribution to GDP from 2 percent in 2021 to 10 percent by 2040.
Oman Investment Authority’s funding of xAI builds on previous investments from the region into Musk’s ventures. It invested in SpaceX, which designs, manufactures and launches advanced rockets and spacecraft, in December 2021.
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In May 2024 xAI secured $6 billion in funding, elevating its valuation to $24 billion. Investors in this round included Saudi Prince Alwaleed bin Talal and Saudi holding company Kingdom Holding, among others.
During Elon Musk’s acquisition of Twitter – now X – in October 2022, Prince Alwaleed bin Talal rolled over his existing stake, valued at approximately $1.9 billion, into the new privately held company.
Aside from the Oman Investment Authority, the Qatar Investment Authority also invested $375 million in the social media platform.
In 2020, Abu Dhabi-based IHC acquired a 94 percent stake in Falcon CI IV LP, a private equity fund with investments in SpaceX.
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