Kingdom Holding Company (KHC), the Saudi conglomerate with interests spanning hotel management, real estate, and equity investments, has announced an additional $400 million (SAR 1.5 billion) investment in xAI Corporation. The artificial intelligence company, founded by Elon Musk and a team of global engineers, focuses on advancing AI to accelerate human scientific discovery.
The investment made during xAI’s Series C funding round mirrors KHC’s prior $400 million participation in xAI’s Series B funding round. Both rounds were funded through KHC’s internal resources, as disclosed in a filing to Saudi Arabia’s Tadawul stock exchange.
xAI aims to develop cutting-edge AI models and collaborate with other Musk-led companies, including Tesla, SpaceX, and X, the social media platform with over 500 million users. Despite being a newly established entity with no financial records available for the past three years, xAI’s valuation has climbed to $45 billion in the Series C round, up from $25 billion during Series B.
This investment deepens KHC’s strategic relationship with Musk, building on its longstanding stake in X (formerly Twitter), which it has held since 2015. The move aligns with KHC’s strategy of securing early stakes in transformative technologies and underscores its ambition to lead and innovate within the burgeoning AI industry.