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Kingdom Holding Company participates in Series C funding round of xAI, acquiring a stake valued at SAR 1.5 billion (USD 400 million).
| Element List | Explanation |
|---|---|
| Introduction | Kingdom Holding Company (KHC) announces the purchase of a stake in X.AI CORP (xAI), with a total value of SAR 1,500,000,000 (USD 400,000,000). The stake was acquired as part of xAI’s Series C funding round. |
| Transaction Details | 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. |
| Transaction Amount | The value of the transaction is SAR 1,500,000,000 (USD 400,000,000) |
| Transaction Conditions | None |
| Parties of the Transaction | 1- Kingdom Holding Company 2- X.AI CORP |
| Transaction Financing Method | Company's internal resources |
| Date of Entering Into The Transaction | 2024-12-23 Corresponding to 1446-06-22 |
| Description of Activity of The Asset Subject of The Transaction | xAI is an artificial intelligence company formed by Elon Musk and a team of world class engineers recently. Its aim is to build artificial intelligence to accelerate human scientific discovery. Its strategy is to develop leading AI models and to work closely with other technology companies associated with its founder including Tesla, SpaceX and X, whose app has more than 500 million users. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | xAI’s financial statements for the last three years are unavailable as it is a newly established entity. However, as part of its Series C funding round, xAI has been valued at USD 45 billion (SAR 168.75 billion), reflecting a significant increase from its valuation of USD 25 billion (SAR 93.75 billion) during the Series B funding round in which KHC participated and that investment has already appreciated, driven by the substantial valuation growth of xAI. |
| Transaction reasons | 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. |
| Expected Impact of the Transaction on the Company and Its Operations | Kingdom Holding Company is an investment holding company, and this transaction is part of its ordinary course of business. |
| Related Parties | None |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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Last Price 9.34
Net Change 0.06 (+0.65%)
Value Traded (Sar) 2,436,969.95
Volume Traded 262,035
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