HUMAIN Backs xAI Before SpaceX Merger
HUMAIN has invested $3 billion in a Series E round for xAI, a move preceding a historic merger between the two companies. The deal is expected to create a new entity focused on advancing AI and its applications in space exploration. Social media discussion is anticipated around the strategic vision and the competitive implications for the AI and space industries.
- The $3 billion investment from HUMAIN, a company backed by Saudi Arabia's Public Investment Fund (PIF), was part of xAI's Series E financing round. This transaction converted HUMAIN's stake into shares of the newly merged SpaceX entity, making the PIF a minority shareholder. - This deal is an extension of a partnership announced in November 2025, where HUMAIN and xAI agreed to jointly develop over 500 megawatts of AI data center infrastructure in Saudi Arabia. The plan also includes deploying xAI's Grok AI models within the Kingdom. - The merger values the combined SpaceX and xAI entity at approximately $1.25 trillion. The move is seen as a way to finance xAI's cash-intensive operations by joining it with the more profitable SpaceX. - A primary long-term goal of the merger is to address the immense and growing energy demands of artificial intelligence. The stated plan involves using SpaceX's launch capabilities to build vast, solar-powered AI data centers in space. - Following the acquisition, the xAI division underwent a significant reorganization to align with what is described as SpaceX's "military-grade" operational intensity. This cultural shift has reportedly led to the departure of half of xAI's original twelve co-founders. - The CEO of HUMAIN, Tareq Amin, stated the investment supports their strategy of backing high-impact platforms where "long-term vision, technical excellence, and execution converge." - xAI's Series E funding round, which included HUMAIN's investment, reportedly raised a total of $20 billion from a variety of investors, including NVIDIA and Cisco.
