Saudi Arabian artificial intelligence company Humane announced on Wednesday that it has invested $3 billion in Elon Musk’s xAI as part of a Series E funding round, just ahead of its acquisition by SpaceX.
The investment made Humane a “significant” minority shareholder and its xAI holdings were converted into SpaceX shares, the company said.
Saudi Arabia is increasing its artificial intelligence ambitions as it seeks to capitalize on growing demand for computing power and diversify its sources of revenue beyond oil.
The investment builds on a partnership announced between Humane and xAI at the US-Saudi Investment Forum in November, where the companies announced they would jointly develop 500 MW of AI data center infrastructure.
In January, xAI announced it had raised $20 billion in an expanded Series E funding round as it ramps up the rollout of new models and infrastructure ahead of competitors OpenAI and Anthropic.
A month after announcing the funding, Mr. Musk’s SpaceX acquired xAI in a major integration move that brought together the billionaire’s artificial intelligence startup and his space and rocket company.
(Reporting by Zahheer Kachwala in Bengaluru; Editing by Vijay Kishore)
