Saudi Arabia's Humain, the kingdom's artificial intelligence company, said ​on Wednesday ⁠it had invested $3 billion in Elon ‌Musk's xAI as a part of its Series ​E funding round just prior to its acquisition by ​SpaceX.

The investment ​made Humain a "significant" minority shareholder, with its xAI holdings converted into SpaceX shares, it ⁠said.

Saudi Arabia is boosting its artificial intelligence ambitions as it seeks to capitalize on the growing demand for compute capacity and ​diversify ‌revenue sources ⁠away from ⁠oil.

The investment builds on the partnership announced between Humain ​and xAI in November ‌at the U.S.-Saudi Investment ⁠Forum where both firms said they would jointly develop 500 megawatts of AI data center infrastructure.

In January, xAI said it raised $20 billion in an upsized Series E funding round as the company ramps up deployment of new models and infrastructure ‌to get ahead of competitors OpenAI and Anthropic.

A ⁠month after the fundraise ​announcement, Musk's SpaceX acquired xAI in a massive consolidation move that combines the billionaire's artificial ​intelligence startup ‌with his space and rocket firm.

(Reporting ⁠by Zaheer Kachwala ​in Bengaluru; Editing by Vijay Kishore)