Saudi Arabia’s HUMAIN invested $3B in Elon Musk’s xAI before its acquisition by SpaceX, expanding its AI infrastructure strategy and global technology exposure.
Saudi Arabia’s HUMAIN, the Public Investment Fund’s artificial intelligence arm, has invested $3 billion in Elon Musk’s xAI as part of the company’s Series E funding round.
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The investment was completed before xAI’s acquisition by SpaceX. Following the transaction, the company became a significant minority shareholder, with its xAI holdings converted into shares of SpaceX.
The move underscores Saudi Arabia’s expanding footprint in global AI infrastructure and aligns with HUMAIN’s strategy to deploy large-scale capital into frontier technologies.
“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,” said Tareq Amin, CEO of HUMAIN. “xAI’s trajectory, further strengthened by its acquisition by SpaceX, represents the kind of high-impact platform we seek to support.”
The investment builds on a previously announced 500-megawatt AI infrastructure partnership between HUMAIN and xAI. The agreement, unveiled at the U.S.-Saudi Investment Forum in November 2025, involves the joint development of large-scale data center infrastructure in Saudi Arabia to deploy xAI’s Grok models.
HUMAIN said the combination of xAI’s AI capabilities with SpaceX’s engineering scale and infrastructure creates a platform for accelerated growth, deeper technological integration, and long-term value creation.
In January, xAI raised $20 billion in an upsized Series E round aimed at accelerating model development and infrastructure expansion as it competes with OpenAI and Anthropic. One month later, SpaceX acquired xAI in a consolidation move that combined Musk’s artificial intelligence venture with his aerospace company.
The integration is expected to align AI research, satellite infrastructure, and large-scale engineering capabilities under a unified platform.
HUMAIN indicated that it will continue pursuing investments across artificial intelligence, frontier technologies, and critical infrastructure sectors, reinforcing Saudi Arabia’s ambition to position itself as a global AI and technology hub.
Why HUMAIN Investment Matters to MENA
HUMAIN’s $3 billion investment signals Saudi Arabia’s growing role as a strategic capital provider in global AI infrastructure.
Rather than focusing solely on domestic AI development, the Kingdom is securing equity positions in frontier technology platforms with global scale. By converting its xAI stake into SpaceX shares, HUMAIN gains exposure to a vertically integrated ecosystem spanning artificial intelligence, satellite infrastructure, and aerospace engineering.
The deal also reinforces Saudi Arabia’s ambition to anchor large-scale AI compute within its borders. The previously announced 500MW data center partnership positions the Kingdom as a regional hub for advanced model deployment.
For MENA, the transaction highlights a shift from passive technology adoption to active participation in global AI ownership and infrastructure build-out. As AI becomes both an economic and geopolitical asset, capital deployment at this scale signals long-term strategic positioning rather than short-term investment.
