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Elon Musk’s xAI secures $3 billion from Saudi Arabia’s Humain, strengthening his $1.25 trillion tech empire.

Elon Musk’s artificial intelligence company, xAI, has just landed a massive $3 billion investment. This fresh capital comes from the Saudi Arabian AI firm, Humain, making it one of the largest private tech deals in recent years.

This move is part of a larger $20 billion funding round for xAI. Interestingly, this deal was finalized just before xAI was officially absorbed into SpaceX, Musk's famous space exploration company.

With this $3 billion injection, Humain has become a major minority shareholder in xAI. Because of the merger, their stake will now convert into equity in SpaceX.

In a statement released on Wednesday, Humain which is backed by the Saudi Public Investment Fund (PIF) described the move as a "strategic investment." 

They noted that the deal happened at a "compelling inflection point" just before the SpaceX acquisition in early February.

The investment shows that investors are betting big on Musk’s tech world. While xAI is still competing with heavyweights like OpenAI’s ChatGPT and Anthropic’s Claude, it has a unique edge.

xAI’s Grok chatbot is already integrated into the X social media platform, giving it access to real-time data and a massive audience.

This isn’t the first time Musk and the Saudis have done business. Back in late 2025, Humain and xAI announced plans to build a 500-megawatt data center in Saudi Arabia.

For Saudi Arabia, this deal is part of a bigger plan to move away from oil and become a global tech hub. 

Across the Gulf region, wealth funds in Qatar, Kuwait, and the UAE are now managing over $4 trillion, and much of that money is heading straight into AI.

Musk recently revealed that the combined value of SpaceX and xAI is now around $1.25 trillion. This shows just how central AI has become to his business strategy.

By bringing xAI under the SpaceX umbrella, Musk is creating a tech powerhouse that spans from social media and AI to space travel. With $3 billion more in the bank, the "Musk ecosystem" looks more dominant than ever.