Kingdom Holding Company (KHC), a Saudi conglomerate with a diverse portfolio spanning hotel management, real estate, and equity investments, has announced its acquisition of a significant stake in xAI Corporation, an artificial intelligence company founded by Elon Musk and a global team of engineers. The investment, valued at SAR1.5 billion ($400 million), was made through participation in xAI’s Series C funding round.
This marks KHC’s continued investment in xAI, following a similar stake acquired during the Series B funding round at the same valuation. The funding was provided from KHC’s internal resources, according to a filing with the Saudi bourse, Tadawul.
xAI is an innovative company focused on advancing artificial intelligence to accelerate human scientific discovery. The company plans to develop cutting-edge AI models and collaborate closely with other tech giants connected to Musk, including Tesla, SpaceX, and X (formerly Twitter), the app with over 500 million users.
While xAI’s financial statements for the past three years remain unavailable due to its recent establishment, the company has been valued at $45 billion in the Series C funding round, reflecting a substantial increase from its previous valuation of $25 billion during the Series B round.
This investment reinforces KHC’s strategic partnership with Elon Musk, further solidifying its involvement in Musk’s ventures, including its stake in X (formerly Twitter), which KHC has held since 2015. The move aligns with KHC’s strategy of securing early stakes in emerging technologies and underscores its ambition to lead and innovate within the AI industry.
