xAI Secures $3 Billion from Saudi-Linked Humain Ahead of SpaceX Takeover

Elon Musk’s artificial intelligence startup xAI has received a $3 billion investment from Humain, an AI firm linked to the Saudi government, signalling growing Middle Eastern influence in global AI development. The funding strengthens xAI’s financial position ahead of its acquisition by Musk’s SpaceX.

The investment, announced on 18 February 2026, is part of xAI’s Series E funding round. Humain, supported by Saudi Arabia’s Public Investment Fund, now holds a substantial minority stake in xAI. Under the agreement, Humain’s xAI shares were converted into SpaceX shares after Musk’s company acquired xAI earlier this month, consolidating his AI and space ventures into a single technology platform.

This $3 billion contribution forms part of a larger Series E round, in which xAI raised approximately $20 billion earlier this year, making it one of the largest fundraising efforts ever for a private AI company. Other investors in the round include Fidelity, Cisco, Nvidia, the Qatar Investment Authority, and SpaceX itself.

Humain’s involvement not only provides additional financial support for Musk’s AI project but also highlights the ongoing partnership between xAI and Middle Eastern investors. Earlier in the decade, these backers helped fund data centre projects and computational infrastructure to train and deploy large AI models.

At the U.S.–Saudi Investment Forum in November 2025, Humain and xAI announced plans to build 500 megawatts of AI data centre capacity. The planned facility is expected to rank among the world’s most advanced, supporting high-demand AI workloads outside the United States.

Why the Funding Matters

The size and timing of the Humain investment are significant:

• Cost of AI: Training advanced AI models requires extensive computing power, particularly GPU clusters and custom chips, demanding substantial financial resources. AI startups are increasingly raising large capital sums to compete with leaders like OpenAI and Anthropic.

• Middle Eastern Investment: Gulf investors, including those from Saudi Arabia, Qatar, and the UAE, have invested tens of billions in global AI and technology firms. Their aim is to diversify from oil to knowledge-based industries, funding AI companies, data centres, and tech partnerships.

• xAI’s Market Position: Founded in 2023, xAI has quickly grown its computing capabilities, including a major data centre called “Colossus.” The company seeks to compete with established players through aggressive investment strategies.

The $3 billion infusion came shortly before xAI was acquired by SpaceX in an all-stock deal. The merger integrates AI capabilities into Musk’s broader technology empire, which includes SpaceX’s space and satellite operations. The combined entity is reported to be valued at over $1.25 trillion as it prepares for a public listing.

This union creates a unique technology company capable of managing everything from AI data centres in space, powered by SpaceX satellites, to software models like Grok, xAI’s generative AI assistant.

Trends in AI Investment and Competition

xAI’s latest funding comes amid a surge of investment in artificial intelligence:

• Major AI Funding: In 2025, multiple AI labs secured large investments, some seeking $50 billion from Middle Eastern and other sovereign investors.

• Competing with OpenAI and Anthropic: OpenAI is reportedly pursuing around $50 billion from Middle Eastern backers to expand computing and model capabilities. Rival firms such as Anthropic have also raised hundreds of billions.

• Industry Consolidation: The SpaceX–xAI merger reflects a broader trend of consolidation in AI, where companies combine to gain scale, distribution networks, and distinctive technologies in a competitive market.

Looking Ahead

Humain’s investment is expected to support xAI in several areas:

• Expanding GPU clusters to train next-generation AI models.

• Developing data centres outside the U.S., particularly in the Middle East, where energy costs and incentives are favourable.

• Accelerating product launches for AI tools integrated with social platforms, businesses, and potential space applications.

Despite the substantial funding, xAI faces challenges, including competition from established players and increasing regulatory scrutiny around AI ethics, consumer safety, and model governance.

The $3 billion injection from Saudi-linked Humain demonstrates how global politics, sovereign investment funds, and the race for AI leadership intersect, with Musk’s ventures positioned at the centre of a new, internationally connected AI ecosystem.