Saudi Prince Alwaleed’s Kingdom Holding has now invested $800 million in Elon Musk’s xAI and Musk has set-up an xAI London company as he aligns with Nigel Farage’s far-right Reform party
Last week I broke the news that while rumors are swirling that Elon Musk may give $100 million to Nigel Farage’s far-right Reform party, he also just incorporated X.AI London Ltd – a company that could potentially be used to funnel his political donation to the Reform party.
I also first reported that Saudi Prince Alwaleed’s Kingdom Holding – a significant investor in X – had invested $400 million into xAI as part of a Series B funding round earlier this year that raised $6 billion. And I reported that Prince Alwaleed’s Kingdom Holding was part of another recent funding round for xAI, but the amount of this second investment was unknown. A recent filing now shows the amount invested.
Prince Alwaleed’s Kingdom Holding has now invested $800 million in Elon Musk’s xAI
Elon Musk’s xAI raised $6 billion in a Series B funding round earlier this year. A December blog post says xAI raised another $6 billion in a Series C funding round and lists the funders including Kingdom Holdings (and QIA, the Qatar Investment Authority, which is also separately an investor in Jared Kushner’s Affinity Partners).
We have closed our Series C funding round of $6 billion with participation from key investors including A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, amongst others. Strategic investors NVIDIA and AMD also participated and continue to support xAI in rapidly scaling our infrastructure.
An announcement on December 25, 2024 for Prince Alwaleed’s Kingdom Holding Company reveals the investment of another $400 million as part of xAI’s Series C Funding round – bringing the total invested to $800 million.
The Kingdom Holding announcement ‘Transaction Details’ notes that the $400 million investment follows the ‘previous investment of the same amount in xAI during its Series B funding round.’
Kingdom Holding Company (KHC) is pleased to announce the acquisition of an additional stake in xAI, with a total investment of SAR 1,500,000,000 (USD 400,000,000) through participation in the Series C funding round. The transaction follows KHC’s previous investment of the same amount in xAI during its Series B funding round. The transaction further solidifies KHC’s strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015.
The filing ‘Transaction reasons’ highlights the importance of Kingdom Holding’s investment and partnership with Elon Musk:
KHC’s global network and diversified investment portfolio provides access to unique opportunities such as this xAI stake. This investment continues Kingdom Holding Company’s close relationship with Elon Musk and associated companies. It also forms part of KHC’s business model of securing early stakes in emerging technologies and its ambition to lead and innovate within the AI industry.
Saudi Prince Alwaleed’s Kingdom Holding likely has over $1 billion invested in Elon Musk’s businesses
In my prior analysis of the value of Prince Alwaleed’s Kingdom Holding Company stake of $1.9 billion that rolled into Twitter when Musk took it private in 2022 – I estimated that the current value has decreased sharply to approximately $262 million, based on Kingdom Holding filings.
If that $262 million stake in X.com is separate from the two $400 million investments in xAI – combined they would bring Prince Alwaleed’s Kingdom Holding investment in Elon Musk’s businesses to more than $1 billion.
Saudi Arabia’s Public Investment Fund (PIF) owns 16.8% of Kingdom Holdings, making PIF a large indirect investor in Elon Musk’s businesses
I previously covered how the Saudi Arabian sovereign wealth fund Public Investment Fund (PIF) entrusted over $2 billion to be managed by Jared Kushner’s advisory firm Affinity Partners and PIF invested in LIV golf tournaments at various Trump properties.
The Public Investment Fund is also a 16.8% owner of Kingdom Holding and, therefore, also a not-insignificant indirect investor in Elon Musk’s X and xAI.
Musk, who is advising Trump and may give $100 million to Nigel Farage’s far-right Reform party, has just set up X.AI London Ltd
As I wrote in my prior piece, at the end of November The Sunday Times reported that Elon Musk may be preparing to give $100 million to Nigel Farage, the leader of Reform UK, which was previously known as the Brexit Party. A donation of that size would be the largest ever made in British electoral history.
Last week Elon Musk met with Nigel Farage and Reform’s new party treasurer, Nick Candy, at Donald Trump’s Mar-a-Lago (Nick Candy is reported to be a billionaire property tycoon who runs Candy Property and Candy Ventures). Nigel Farage also published a piece in the Telegraph about how “Elon Musk believes Britain is in very deep trouble” under Keir Starmer.
Elon Musk has just incorporated a new company - X.AI London Ltd – a company that could potentially be used to donate to Farage’s Reform party.
UK’s Companies House filings show that X.AI London Ltd (company # 16131916) was incorporated on December 12, 2024. Elon Musk’s long-time business associate Jared Birchall is the director and Elon Musk is listed as the person with significant control. The incorporation filing shows the initial shareholder with 100 ordinary shares is X.AI LLC.
It is not clear what the scope of Musk’s focus will be for xAI in London, but it appears that this is the only active company that shows Elon Musk as a significant owner.
Last summer, after the Wall Street Journal had reported that Elon Musk planned to donate $45 million per month to Trump, which I reported on here – Musk denied that the rumor was true. In the end Musk actually spent over $250 million backing Trump in the 2024 U.S. presidential election. Based on this track record it seems likely that the rumor that Musk will give $100 million to Nigel Farage’s Reform party could happen.
It seems clear that Elon Musk is now using his wealth to further his interests worldwide. As The Guardian reported, Elon Musk just wrote an opinion piece for a German paper supporting the far-right neo-Nazi AfD party in Germany.
The AfD backing from Musk, who also defended his right to weigh in on German politics due to his “significant investments”, comes as Germans are set to vote on 23 February after a coalition government led by the German chancellor, Olaf Scholz, collapsed late this fall.
Notably, Musk defends his right to weigh in on German politics due to his significant investments there. The age of the U.S. oligarch is here and Musk is leading the way by using his vast wealth to promote his far-right agenda where he does business – which is almost everywhere on earth and in space.
There is no doubt in my mind that this massive influx of money coming from crypto, repressive regimes from the Middle East, dubious investment funds and the tech industry is not about business. It’s a fundraiser to fund the religious right and white nationalist to eventually buy or subvert governments around the world. But here’s the thing. They already got the biggest fish. All the rest will fall like dominoes. I don’t know where China, Russia and South America fall into this scheme though.
FElon Musk is a egocentric power-hungry idiot who needs to be deported back to South Africa