Saudi’s Kingdom Holding invests $400 million in Elon Musk’s xAI company
Saudi Arabia’s Kingdom Holding Company (KHC) revealed on Wednesday that it invested $400 million (SAR 1.5 billion) in xAI, an artificial intelligence company supported by Elon Musk, by joining its Series C funding round.
KHC’s $400 Million Investment
- Kingdom Holding Company (KHC) has invested $400 million in xAI, a company co-founded by Elon Musk. This follows a similar investment KHC made in xAI during its Series B funding round in May.
- The deal strengthens KHC’s partnership with Musk, which began in 2015, when KHC took a stake in X (formerly Twitter). xAI focuses on creating advanced AI models and collaborating with Musk’s other companies like Tesla, SpaceX, and X, which has over 500 million users.
- On Monday, xAI announced it raised $6 billion in a Series C funding round, bringing its valuation to $45 billion—up from $25 billion during the Series B round. KHC said the funds will support product development and infrastructure, including its Grok AI model and a supercomputer site in Memphis, Tennessee, used to train AI models.
- xAI is also working on Grok 3, an updated version of its AI model, expected to be released by the end of the year.
- Last week, Oman’s sovereign wealth fund (OIA) also invested an undisclosed amount in xAI, as part of its strategy to expand into advanced technologies and grow its global investments. Other big investors in xAI’s latest funding round include Blackrock, A16Z, Fidelity, and Sequoia Capital.
Big number
xAI has raised $12 billion this year from its Series B and Series C funding rounds. Some of the investors include Morgan Stanley, Kingdom Holding, Andreessen Horowitz, chip maker Nvidia, and semiconductor company AMD.
KHC
KHC has a global network and a wide range of investments, which gives it access to special opportunities. Its recent investment in the technology company is part of its strategy to get involved with new technologies early and to become a leader in the AI industry.
Published: 27th December 2024
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