Kingdom Holding Company buys a stake in XAI for 1.5 billion riyals

Kingdom Holding Company announced the purchase of a stake in XAI Company, for a total value of 1.5 billion riyals ($400). This stake was acquired as part of XAI’s Series C financing round, indicating that this investment comes after its previous investment of the same value in xAI during the Series B financing round.

The company said in a statement that this investment strengthens the strategic partnership between it and Elon Musk, and is in line with its strategic investments in (X Twitter previously), in which it has owned a stake since 2015.

It added that xAI is a company specialized in artificial intelligence that was recently founded by Elon Musk and a team of global engineers. The company aims to develop artificial intelligence to accelerate human scientific discoveries.

Its strategy is to develop pioneering artificial intelligence models and work closely with other technology companies associated with its founder, including Tesla, SpaceX and X, whose application has more than 500 million users.

She explained that xAI’s financial data for the past three years is not available as it is a newly established entity. However, xAI was valued at SAR 168.75 billion ($45 billion) in a Series C funding round as part of this capital raising initiative. This reflects a significant increase from its valuation of SAR 25 billion ($93.75 billion) during the Series B funding round in which Kingdom Holding Company participated. The value of this investment has already increased as a result of the significant growth in xAI’s valuation. She continued: “Kingdom Holding Company has a global network of relationships and a diversified investment portfolio that enables it to access unique opportunities such as investing in xAI. This reflects the continued close relationship between Kingdom Holding Company and Elon Musk and his associated companies. This investment is in line with Kingdom Holding Company’s business model that focuses on early acquisition of emerging technology shares that aspire to leadership and innovation in the artificial intelligence industry.”