Saudi's Humain invested $3 billion in xAI's Series E funding round

Feb 18 (Reuters) - Saudi ‌Arabia's Humain, ​the ​kingdom's artificial intelligence company, said on Wednesday it had invested $3 billion ‌in Elon Musk's xAI as a part ⁠of its Series E funding round just prior ‌to its acquisition by ‌SpaceX.

The investment made Humain a "significant" minority shareholder, with its xAI holdings converted into SpaceX ​shares, it said.

Saudi Arabia is boosting its artificial intelligence ambitions as it seeks ⁠to capitalize on the growing demand for compute capacity and ​diversify revenue sources away from oil.

The investment builds on the partnership announced ​between Humain and xAI in ‌November at the U.S.-Saudi Investment Forum where both firms said they ⁠would jointly develop 500 megawatts of AI data center infrastructure.

In January, xAI said it raised $20 ⁠billion in an upsized Series E funding round as ​the company ramps up deployment of new models and infrastructure to get ahead of competitors OpenAI and ‌Anthropic.

A month after the fundraise announcement, Musk's SpaceX acquired xAI in ‌a massive consolidation move that combines the ⁠billionaire's artificial intelligence ‌startup with his ​space and rocket firm.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay ‌Kishore)

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