Saudi-Backed Humain Invests $3B in Elon Musk’s xAI
Synopsis
Saudi Arabia’s Humain has invested $3 billion in Elon Musk’s artificial intelligence company xAI as part of its Series E funding round. The companies did not disclose the total size of the round or xAI’s updated valuation. The investment comes as global funding for artificial intelligence companies continues to rise and Middle Eastern investors expand their presence in U.S. technology ventures.
Saudi Arabia’s Humain invested $3 billion in Elon Musk’s AI company xAI as part of its Series E funding round. The total round size and updated valuation were not disclosed. The deal reflects continued global investment growth in artificial intelligence and increased Middle Eastern participation in major technology ventures.
Key Highlights
- Saudi-backed Humain invested $3 billion in xAI’s Series E round.
- xAI was founded by Elon Musk in 2023 to develop AI systems.
- Total size and valuation of Series E round were not disclosed.
- Investment reflects rising global funding in artificial intelligence sector.
Humain, a Saudi Arabian-based investment firm, has invested in the Series E round of xAI, an artificial intelligence startup founded by Elon Musk, amounting to $3 billion, according to Reuters.
The investment provides the Saudi-backed company with an ownership stake in xAI, created in 2023 to develop powerful artificial intelligence systems, such as large language models that can compete with other large AI creators.
Series E Details and Valuation Context
The size of the Series E round of xAI and the increased valuation of the company were not stated. But previous reports had estimated xAI at tens of billions of dollars in previous funding rounds.
The Series E round comes after the major capital raising in the artificial intelligence sector, with businesses looking to finance the growth of computing capacity and build large-scale AI models that necessitate a large-scale data processing infrastructure.
Saudi Investment Push Into AI
Humain's $3 billion commitment reflects Saudi Arabia's broader strategy to expand investments in advanced technology sectors as part of its economic diversification plans. Middle Eastern investors have increasingly participated in large U.S. technology funding rounds in recent years.
According to industry data, investments in artificial intelligence have grown significantly since late 2022, when the use of generative AI tools by various businesses became common.
Both xAI and Humain did not provide other financial details in the reports.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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