Elon Musk’s xAI Secures $3 Billion from Saudi Firm Humain, Strengthening AI and SpaceX Ties
Elon Musk’s artificial intelligence venture, xAI, has secured a staggering $3 billion investment from Saudi Arabian AI company Humain. This deal is one of the largest single-ticket investments in a private AI firm in recent years and underscores the growing influence of Middle Eastern capital in the global tech market. The funding comes as part of xAI’s broader $20 billion Series E financing round.
Humain’s investment transforms the company into a significant minority shareholder in xAI. Following the startup’s absorption into Musk’s privately held space exploration company, SpaceX, Humain’s stake is set to convert into SpaceX equity. The move highlights the strategic integration of AI and space technologies within Musk’s expanding business ecosystem.
xAI, known for developing the Grok chatbot and AI services integrated into the X social media platform, is positioning itself at the intersection of generative AI, real-time data, and social media. Analysts say the investment reflects strong confidence in Musk’s AI ventures, even as the market remains highly competitive, with key players like OpenAI’s ChatGPT and Anthropic’s Claude leading the space.
For Saudi Arabia, this deal aligns with the kingdom’s ambition to become a global AI hub, reducing its dependence on oil revenues. Humain, established in 2025 and backed by sovereign wealth structures, has already embarked on projects including a 500-megawatt data center in Saudi Arabia and the deployment of xAI’s Grok models across the kingdom. The investment offers both capital and long-term infrastructure partnerships for AI deployment.
Earlier in February 2026, Musk disclosed that the combined valuation of SpaceX and xAI reached approximately $1.25 trillion, highlighting AI’s central role in his broader enterprise. With this $3 billion boost, xAI strengthens its balance sheet and expands global ambitions, while Middle Eastern investors increasingly play a pivotal role in shaping the future of artificial intelligence.
source: nairametrics