Humain, the artificial intelligence company owned by Saudi Arabia’s Public Investment Fund (PIF), invested $3 billion in Elon Musk’s xAI shortly before the startup was acquired by SpaceX.

The investment was made as part of xAI’s Series E funding round, through which Humain acquired a significant minority stake, which was subsequently converted into shares of SpaceX following the acquisition.

The transaction aligns with PIF’s broader strategy to position Saudi Arabia as a global hub for artificial intelligence under its Vision 2030 economic diversification program.

Through Humain, the sovereign fund is combining capital investment with infrastructure development, partnerships with leading technology firms and domestic capability building, as it seeks to reduce reliance on oil revenues and expand into advanced industries.

Humain’s $3 billion commitment offers potential long-term capital appreciation while strengthening its role as a strategic investor in emerging technologies.

Chief Executive Tareq Amin said the investment reflects Humain’s conviction in transformational AI and its approach of backing “exceptional opportunities where long-term vision, technical excellence, and execution converge.” He added that xAI’s trajectory, further reinforced by its acquisition by SpaceX, represents “the kind of high-impact platform we seek to support with significant capital.”

The deal builds on a collaboration announced in November at the US-Saudi Investment Forum, where Humain and xAI agreed to develop more than 500 megawatts of next-generation AI data center and computing infrastructure in Saudi Arabia, alongside deploying xAI’s Grok models in the Kingdom.

In a post on X, Amin said Humain had become a significant minority shareholder in xAI prior to what he described as its “historic acquisition” by SpaceX. He added that the transaction reinforces Humain’s dual role as both a strategic development partner and a scaled global investor in frontier AI.

Earlier in February, SpaceX completed its acquisition of xAI, a move seen as part of Elon Musk’s strategy to integrate artificial intelligence with space and communications technologies. According to Bloomberg, the combined entity is valued at $1.25 trillion and aims to build a vertically integrated ecosystem spanning AI, launch systems and satellite communications.