xAI raises 3 billion before SpaceX merger

Today, I’m breaking down a deal that goes far beyond a simple check. Elon Musk’s xAI has just raised $3 billion from the Saudi fund HUMAIN, just weeks before the merger with SpaceX. The timing is anything but accidental and raises fascinating questions about the geopolitical behind-the-scenes of this major technological alliance.

A last-minute investment before the mega-merger

In February 2026, HUMAIN injected $3 billion into xAI during a Series E funding round. What makes this operation particularly interesting is its strategic timing: we are just weeks away from the historic merger between xAI and SpaceX.

The mechanism is fascinating: the shares that HUMAIN is acquiring today in xAI will be automatically converted into SpaceX shares once the merger is finalized. This share conversion turns the Saudi fund into a significant minority shareholder in one of the most strategic companies in the world.

From a financial perspective, it’s a bold bet on an astronomical future valuation. By investing in xAI now, HUMAIN secures a stake in the merged entity’s capital before xAI’s impact on Elon Musk’s personal fortune propels the valuation to even more dizzying heights.

This move demonstrates a long-term vision: rather than waiting for the merger to negotiate an entry into the capital, the Saudi fund is securing its position now, likely on more favorable terms.

HUMAIN, the Saudi champion of artificial intelligence

But who is HUMAIN, really? This Saudi artificial intelligence company is directly backed by the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund which holds over $900 billion in assets.

Behind this investment lies a clear national strategy: diversifying the Saudi economy beyond oil by becoming a key player in global tech. Saudi Arabia doesn’t intend to remain a simple financial investor; it aims to build its own technological ecosystem.

Tareq Amin, CEO of HUMAIN, clearly expressed this vision: to become a full-stack player in artificial intelligence, meaning mastering the entire value chain, from infrastructure to final applications.

This isn’t the kingdom’s first major move in Silicon Valley. Following massive investments in Uber, Lucid Motors, and Magic Leap, Saudi Arabia is multiplying its bold technological bets.

But this approach raises a legitimate question: why is a Saudi sovereign wealth fund investing so heavily in sensitive technologies like AI and space? The answer blends economic ambitions, geopolitical influence, and a desire to have weight in the technologies of tomorrow.

A partnership that goes far beyond the check

500 megawatts of AI infrastructure in Saudi Arabia

The agreement between xAI and HUMAIN isn’t limited to a financial transfer. During the U.S.-Saudi Investment Forum in November 2025, both parties signed an ambitious industrial partnership.

HUMAIN has committed to deploying over 500 megawatts of data centers dedicated to artificial intelligence on Saudi territory. This massive infrastructure will be used to run the Grok models developed by xAI.

In concrete terms, the kingdom isn’t just investing: it’s building the physical ecosystem necessary to host and operate these cutting-edge technologies. It’s a particularly smart vertical integration strategy.

Grok soon to be deployed in the Middle East

The agreement also includes the deployment of Grok AI models in Saudi Arabia and potentially throughout the Middle East region. The ambition is clear: to make the kingdom a regional hub for artificial intelligence.

It remains to be seen what concrete applications will emerge and under what regulatory framework these technologies will operate locally. These questions remain unanswered for now.

The xAI-SpaceX merger: a geopolitical as much as a technological stake

Let’s take a step back. This fundraising is part of the broader context of the merger between SpaceX and xAI, which could reach a valuation of $1 trillion. We are talking about one of the largest tech mergers ever recorded.

The synergy is obvious: xAI’s artificial intelligence capabilities combined with SpaceX’s space infrastructure create a unique technological giant. Imagine satellites equipped with advanced AI, autonomous navigation systems for space missions, or real-time analysis of massive satellite data.

This merger also paves the way for the prospect of a historic public offering. A SpaceX IPO with xAI integrated could shatter all valuation records in the tech sector.

But the geopolitical dimension is just as fascinating. Saudi capital in dual-use technologies (civilian and potentially military) like space and AI raises real strategic questions. How does this alliance fit into the complex diplomatic relations between the United States, Europe, and the Middle East?

For us, European observers and Tesla owners, these geopolitical stakes are not insignificant. Europe is already lagging considerably behind in the AI race against the United States and China. Seeing USA-Saudi Arabia alliances form in these fields completely redraws the global map of technological innovation.

As industry analysts point out, this operation perfectly illustrates how the boundaries between finance, technology, and geopolitics are blurring. Today’s investments in AI and space are shaping tomorrow’s power balances.

This technological alliance between the Musk empire and Saudi capital perhaps marks the beginning of a new era. An era where American tech giants find the colossal financial resources needed for their outsized ambitions in Gulf sovereign wealth funds. It remains to be seen how this reshuffling will influence our own European technological ecosystem in the years to come.