Saudi-backed artificial intelligence firm Humain has invested $3 billion in xAI, the AI startup founded by Elon Musk, according to a statement released Wednesday.

The investment makes Humain a significant minority shareholder.

The company noted that the funding was completed shortly before xAI’s acquisition by Musk’s space exploration firm SpaceX, and that Humain’s stake will be converted into SpaceX shares.

The investment strengthens ties between Musk and Humain, which was established last year to help transform Saudi Arabia into a global artificial intelligence hub.

The two companies also plan to jointly develop a 500-megawatt data centre in the kingdom.

Humain, launched in May 2025 with backing from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has embarked on an aggressive dealmaking drive aimed at diversifying the economy beyond oil.

In addition to its partnership with xAI, the firm has invested in AI video-generation startup Luma AI and formed a joint venture with Advanced Micro Devices and Cisco Systems to expand data-centre capacity in the country.

It was earlier reported in February that
Musk’s space exploration company SpaceX merged with artificial intelligence firm xAI in a $1.25 trillion deal