OIA Pumps Undisclosed Investment In Elon Musk’s xAI

The sovereign wealth fund of the Sultanate of Oman, Oman Investment Authority (OIA), has invested in Elon Musk’s artificial intelligence (AI) startup, xAI, for an undisclosed stake. The investment is part of OIA’s strategy to diversify its international portfolio by targeting transformative industries with high growth potential.   

Since its launch in March 2023, xAI has achieved notable developments, including the establishment of a data center in the US and the release of its AI platform, Grok-2. 

xAI aims to advance AI systems that can process and analyze real-time data. The Grok-2 platform includes tools for optimizing AI models and managing different types of visual data, such as documents, charts, and images.   

This investment builds on OIA’s stake in SpaceX, the Musk-owned aerospace company behind the Starlink satellite communication system. OIA reports an internal rate of return exceeding 37 percent from its SpaceX investment, attributed to the company’s expansion and the deployment of satellite communication services in various markets.   

OIA manages and develops Oman’s national and international assets, with a portfolio spanning over 40 countries and multiple sectors, including energy, logistics, information and communication technology (ICT), finance, food security, and aviation. 

This move also places OIA among other investors in xAI, including Qatar Investment Authority, Valor Equity Partners, Sequoia Capital, and Saudi Arabia’s Kingdom Holding. 

“The partnership between Oman and the Gulf countries with xAI is an excellent idea. These investments will bear fruit as we work together to build a superintelligent AI capable of solving numerous problems. We are nearing the completion of training the Grok 3 model, which we believe will be the smartest AI model in the world,” Elon Musk said during an interview held during the Annual Meeting of Sovereign Funds in Muscat in November.  

xAI has raised $6 billion in equity financing in its Series C financing round this month, valuing the company at $45 billion.