Elon Musk's xAI Secures $3 Billion from Saudi's Humain in Series E Round

Saudi Arabia’s Humain, an artificial intelligence company has invested $3 billion in Elon Musk’s xAI as part of its Series E funding round. As per The Bloomberg report, the deal gives it a significant minority stake in the US-based start-up.  

The investment was announced shortly before SpaceX moved to acquire xAI as part of a restructuring of Musk’s businesses.  

Stake to Be Converted After Takeover 

Humain said its holding in xAI will be converted into shares of SpaceX once the acquisition is completed. This follows xAI’s enlarged Series E round, in which the company raised about $20 billion to fund model development and computing infrastructure.  

The takeover places the AI start-up under the same corporate structure as Musk’s rocket business. 

Partnership on AI Infrastructure 

The investment builds on earlier cooperation between the 2 firms. In November, Humain and xAI said they would jointly develop 500 megawatts of AI data-centre capacity in Saudi Arabia.  

Around the same time, Humain signed a separate agreement with Nvidia after US authorities cleared the export of advanced AI chips to the kingdom. 

Humain was launched in May with backing from Saudi Arabia’s sovereign wealth fund, which oversees assets close to $1 trillion. The company forms part of plans to expand technology and other non-oil sectors under the Vision 2030 programme. 

Read More: Adani Enterprises Share Price in Focus as its Arm Adani Road Transport Acquires 49% Stake in Sree Vishwa Varadhi! 

Conclusion 

The $3 billion investment gives Humain a minority stake in xAI and, once converted, an indirect holding in SpaceX after the acquisition is completed. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.