A $3 billion Saudi investment in xAI just weeks before its merger with SpaceX has turned Elon Musk’s AI startup into a geopolitical chess piece—and raised urgent questions about who really controls the future of AI.
HUMAIN, backed by Saudi Arabia’s Public Investment Fund, has converted its $3 billion stake in xAI into shares of the combined xAI-SpaceX entity.
This move solidifies its role as a major shareholder in Musk’s ventures while aligning with Saudi Arabia’s national AI strategy. The partnership includes co-developing 500+ megawatts of AI data center infrastructure in the kingdom and deploying xAI’s Grok models, which will operate under a licensing agreement with a 3% annual fee increase.
HUMAIN has strengthened its strategic partnership with @xAI through a $3B investment in its Series E round, completed ahead of the company’s historic merger with SpaceX.
— HUMAIN (@HUMAIN) February 18, 2026
The investment builds on our collaboration announced at the U.S.-Saudi Investment Forum in November to… pic.twitter.com/TU6gER9Tvf
HUMAIN also projects $300 million in revenue from the Music City Loop, a component of its infrastructure plan.
HUMAIN CEO said:
"This investment reflects HUMAIN’s conviction in transformational AI... represents the kind of high-impact platform we seek to support."
The infrastructure partnership and Grok deployment underscore Saudi Arabia’s push to position itself as a global AI hub.
By merging financial scale with Musk’s technological ambitions, the kingdom is leveraging xAI’s proximity to SpaceX to integrate AI and space technologies—a strategic alignment absent in competing AI ecosystems.