KHC acquires stake in xAI for SAR 1.5B

Kingdom Holding Co. (KHC) acquired a stake in xAI Corp. (xAI) for SAR 1.5 billion ($400 million), as part of xAI’s Series C funding round, according to a statement to Tadawul.

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This followed KHC's previous investment at the same value in xAI during its Series B funding round. The financing was provided from the company’s internal resources.

The transaction further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (formerly Twitter) that KHC has held since 2015.

xAI is an artificial intelligence company recently founded by Elon Musk and a team of global engineers. The company aims to develop AI to accelerate human scientific discoveries.

The company’s strategy focuses on developing leading AI models and working closely with other technology companies associated with its founder, including Tesla, SpaceX, and X, whose application has over 500 million users.

xAI’s financial data for the past three years is unavailable as it is a newly established entity. However, xAI was valued at SAR 168.75 billion during its Series C funding round as part of its capital-raising initiative. This reflected a significant increase from its SAR 93.75 billion valuation during the Series B round, which included a KHC participation. This investment has already increased in value due to the substantial growth in xAI valuation.

KHC has a rich global network and a diversified investment portfolio, enabling access to unique opportunities such as investing in xAI. This reflects the continued strong relationship between KHC, Elon Musk, and his affiliated companies.

Additionally, this investment aligns with KHC business model, which focuses on early acquisition of stakes in emerging technologies aiming for leadership and innovation in the AI industry.