The Oman Investment Authority (OIA) has made a strategic investment in Elon Musk’s artificial intelligence startup, xAI, acquiring an undisclosed stake in the company. This move is part of OIA’s ongoing strategy to diversify its international portfolio and support growth across various high-potential sectors.
xAI, which Musk founded in July of the previous year, was created to compete with market leader OpenAI amid the growing demand for generative AI technologies. Earlier this month, the company successfully raised $6 billion in funding from investors, including Qatar’s sovereign wealth fund, Qatar Investment Authority, Valor Equity Partners, Sequoia Capital, and Andreessen Horowitz. This funding brought xAI’s valuation to an impressive $50 billion.
Other notable investors in xAI include Saudi Arabia’s Kingdom Holding, owned by billionaire Prince Alwaleed bin Talal, who also participated in the company’s $6 billion Series B round.
OIA, which is already a shareholder in Musk’s groundbreaking aerospace company, SpaceX, known for its Starlink satellite communication system, is strengthening its footprint in the technology sector with this new venture. This investment in xAI aligns with OIA’s broader goal of focusing on advanced technologies and diversifying its global investment portfolio.
Since its inception, xAI has made significant progress, including the establishment of a major data center in the United States and the launch of its advanced platform, Grok-2. These milestones are expected to enhance the company’s market position, providing promising returns on OIA’s investment.
Abdulsalam Mohammed Al Murshidi, Chairman of the Oman Investment Authority, noted that this investment is in line with Oman’s broader Vision 2040 objectives, which aim to position the Sultanate of Oman at the forefront of technological advancements.
Elon Musk expressed his enthusiasm for the partnership, stating, “The collaboration between Oman and the Gulf countries with xAI is a great idea. These investments will yield results as we work towards building a superintelligent AI capable of solving numerous problems. We are nearing the completion of training the Grok 3 model, which we believe will be the smartest AI model in the world.”
xAI’s goal is to lead the AI industry, offering systems capable of processing and analyzing real-time data, providing a competitive edge over other AI platforms. Its tools enable users to optimize large AI models and manage a variety of visual data, including documents, charts, graphs, and photographs.
In addition to its stake in xAI, OIA’s partnership with Musk continues through its investment in SpaceX. OIA has seen impressive returns from its SpaceX investment, with an internal rate of return exceeding 37%, driven by SpaceX’s rapid global expansion and the deployment of its satellite communication services worldwide.
