HUMAIN Invests $3B in xAI Ahead of SpaceX Merger
The investment firm HUMAIN has invested $3 billion in xAI's Series E funding round. The investment was made shortly before xAI's planned acquisition by SpaceX. Following the transaction, HUMAIN has become a significant shareholder in the combined entity, positioning itself at a key moment of platform expansion.
- The $3 billion investment from HUMAIN was part of a larger Series E funding round that raised a total of $20 billion for xAI. This round valued xAI at approximately $230 billion before the merger. - Founded in March 2023, xAI has seen a rapid increase in valuation, having been valued at $24 billion in May 2024. The company has raised a total of $45 billion over nine funding rounds. - The acquisition by SpaceX creates a combined entity valued at approximately $1.25 trillion. The strategic goal is to vertically integrate xAI's artificial intelligence capabilities with SpaceX's satellite and launch infrastructure. - HUMAIN is a recently established artificial intelligence company, launched in May 2025 and backed by Saudi Arabia's Public Investment Fund (PIF). The firm aims to build a comprehensive AI ecosystem, from data centers to advanced AI models. - The merger is seen as a strategic move ahead of a potential initial public offering (IPO) for SpaceX, which is anticipated to happen as early as mid-2026. - Elon Musk's xAI had previously acquired another of his companies, X Corp. (formerly Twitter), in an all-stock deal in March 2025. - Key investors in xAI's previous funding rounds include notable venture capital firms such as Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company. - The long-term vision for the combined SpaceX and xAI entity includes the development of space-based AI data centers to overcome the power and cooling limitations of terrestrial facilities.
