Key Takeaway
Humain invests $3 billion in Elon Musk’s xAI as part of its $20 billion Series E funding round, which closed in January 2026. The transaction was finalized shortly before SpaceX acquired xAI, converting the stake into SpaceX shares equal to roughly 0.24% of the combined $1.25 trillion company, based on Bloomberg estimates. The move strengthens Saudi Arabia’s infrastructure-led AI strategy while extending xAI’s capital runway as it scales compute and model deployment.
Humain Invests in xAI – Key Points
The Overview
Saudi Arabia’s Humain invests in xAI at a pivotal moment for the AI sector. On February 18, 2026, the Saudi Arabian AI company disclosed its $3 billion participation in xAI’s Series E round, weeks before SpaceX completed its acquisition of the startup.
The Facts
Deal Structure & Ownership
- Saudi Arabia’s Humain invests $3 billion in xAI’s upsized $20 billion Series E round, which closed in January 2026.
- The investment was publicly disclosed on February 18, 2026.
- Shortly after the round closed, SpaceX acquired xAI, consolidating Musk’s AI and space businesses.
- Humain became a “significant” minority shareholder; its holdings were converted into SpaceX shares.
Saudi AI Strategy & Infrastructure
- Humain was formed in 2025 and is state-owned, backed by Saudi Arabia’s Public Investment Fund.
- The deal builds on a November 2025 partnership announced at the US-Saudi Investment Forum to jointly develop 500 megawatts of AI data center infrastructure in Saudi Arabia.
- Saudi Arabia is targeting AI infrastructure ownership, financing compute capacity and physical buildout rather than limiting its role to passive capital allocation.
xAI Positioning & Commercial Footprint
- In January 2026, xAI confirmed it had raised $20 billion in Series E funding to expand model development and infrastructure as it competes with OpenAI and Anthropic.
- xAI operates the X platform and the Grok chatbot.
Regional Capital Flows
- Sovereign wealth funds in Kuwait, Qatar, Saudi Arabia and the United Arab Emirates control more than $4 trillion in assets.
- In September, the Qatar Investment Authority joined a $13 billion Anthropic round that valued the company at $183 billion.
- Abu Dhabi’s MGX co-led Anthropic’s latest funding round and is targeting over $100 billion in assets under management.
Context
Humain invests as part of Saudi Arabia’s broader push to anchor frontier AI development within its borders. Through equity stakes and large-scale data center commitments measured in megawatts, the kingdom aims to become a training and deployment hub for advanced AI systems.
For xAI, the capital injection and infrastructure partnership provide extended runway and physical compute scale following its integration into SpaceX.
Why This Matters
Saudi Arabia’s Humain invests directly into one of the world’s largest private technology platforms at a moment when AI competition is increasingly defined by infrastructure scale. Capital, power availability, and data center capacity are becoming decisive strategic assets. The deal reinforces Gulf sovereign funds as central players in financing frontier AI development.
This article was drafted with the assistance of generative AI. All facts and details were reviewed and confirmed by an editor prior to publication.
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