Kingdom Holding Company (KHC), a Saudi conglomerate with diverse interests in real estate, hotel management, and equity, has announced a $400 million (SAR 1.5 billion) investment in xAI Corporation, Elon Musk’s artificial intelligence startup. The funding comes as part of xAI’s Series C funding round and marks KHC’s second significant investment in the company.
Strategic AI Investment
This latest investment mirrors KHC’s participation in xAI’s Series B round, also valued at $400 million, according to the company’s filing to the Saudi bourse Tadawul. The funding was sourced from KHC’s internal resources, underscoring the conglomerate’s strategic focus on emerging technologies.
Founded by Elon Musk and a global team of engineers, xAI aims to revolutionize artificial intelligence by accelerating human scientific discovery. The company plans to develop cutting-edge AI models and collaborate closely with Musk’s other ventures, including Tesla, SpaceX and X (formerly Twitter).
Valuation Milestones
xAI’s valuation has seen a meteoric rise with $25 billion during the Series B funding and $45 billion in the recent Series C round.
Although xAI is a relatively new entrant, with no available financial statements for the past three years, the valuation underscores investor confidence in its vision and Musk’s leadership.
KHC’s investment cements its strategic partnership with Elon Musk, building on its longstanding stake in X (formerly Twitter), held since 2015. This move aligns with KHC’s business model of securing early stakes in high-growth, innovative technologies.
In a statement, KHC highlighted its ambition to lead and innovate within the AI industry, emphasizing the transaction as a testament to its forward-looking strategy in emerging tech sectors.
Saudi Arabia’s Tech Ambitions
This investment aligns with Saudi Arabia’s broader vision of becoming a global leader in innovation and technology. The Kingdom has been actively pursuing opportunities in AI and cutting-edge industries, with KHC serving as a key player in advancing these objectives.
KHC’s continued support for xAI underscores its confidence in the potential of artificial intelligence to transform industries and drive future growth. With a $45 billion valuation, xAI is poised to play a pivotal role in shaping the AI landscape, solidifying Elon Musk’s position as a pioneer in this domain.
As the partnership deepens, both KHC and xAI are set to benefit from a dynamic collaboration, paving the way for groundbreaking innovations in the years ahead.
