Saudi Prince Pumps $3B into Musk’s Growing AI Empire – Moby
Saudi Arabian AI company Humain announced a fresh $3 billion in funding for Elon Musk’s xAI as part of the firm’s Series E.
Since Musk’s other venture, SpaceX, decided to “acquire” xAI, the combined company is valued at a whopping $1.25 trillion. Humain itself is backed by Saudi Arabia’s Public Investment Fund (PIF), and the Crown Prince Mohammed bin Salman himself.
Because this latest round occurred before the merger’s closing, the investment was structured to be transferred to the parent company, meaning Humain now holds a minority stake in SpaceX. Estimates put Humain at .24%, recent xAI Investors (including Series E cohort) around 21.4%, early SpaceX Investors, including big names like Fidelity and Google, at 35.0%,. Musk himself remains at the top of the list, controlling 43.4% of the company.
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“Together, these initiatives deepen long-term alignment and extend Humain’s role from strategic partner to leading global shareholder in xAI,” Humain said in a statement.
The “long-term alignment” is likely the Crown Prince’s desire to fulfill his country’s post-oil legitimacy and ensure energy isn’t the only reason the Kingdom remain economically viable in the future. By the PIF’s own numbers, the country is feeling pressure. The Kingdom’s “break-even” point is about $94 per barrel, according to Bloomberg Economics. That climbs to $111 factoring in domestic spending. But brent crude futures are trading around $70 per barrel, which may put the Kingdom underwater.
So the Crown Prince needs Musk to stay relevant. And Musk needs the Crown prince for his money, which, of course, Saudi Arabia has plenty. So the partnership is mutual: Musk gets his runway to keep building. Saudi Arabia, bypassing OpenAI, gets to become a central node for a newly connected world.
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