Established in July 2023, xAI aims to understand the universe's fundamental nature through advanced AI systems. The company has made significant strides, including the development of its AI chatbot, Grok, and the establishment of a major data center in the United States. These developments are expected to strengthen xAI's market position and potentially yield substantial returns for investors like OIA.
Elon Musk, known for his ventures with Tesla and SpaceX, expressed optimism about the partnership, stating, "The collaboration between Oman and 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." He also noted that xAI is nearing the completion of training its Grok-3 model, which he believes will be the most advanced AI model globally.
OIA's investment in xAI aligns with Oman's Vision 2040, which emphasizes the adoption of cutting-edge technologies to drive future progress. Abdulsalam Mohammed Al Murshidi, Chairman of OIA, highlighted that this investment supports Oman's broader goals under Vision 2040, enabling the sultanate to adopt world-class technologies and drive future progress.
This is not OIA's first collaboration with Musk. The authority is also a shareholder in SpaceX, Musk's aerospace company renowned for its Starlink satellite communication system. OIA's investment in SpaceX has been notably successful, achieving an internal rate of return exceeding 37%, attributed to SpaceX's rapid global expansion and the deployment of its satellite communication services worldwide.
The financial details of OIA's stake in xAI have not been publicly disclosed. However, earlier this month, xAI raised $6 billion from various investors, including Qatar's sovereign wealth fund, Qatar Investment Authority, along with Valor Equity Partners, Sequoia Capital, and Andreessen Horowitz, bringing the company's valuation to $50 billion. Additionally, Saudi Arabia's Kingdom Holding, owned by Prince Alwaleed bin Talal, participated in xAI's $6 billion Series B round.
xAI's platform specializes in processing and analyzing real-time data, providing advanced tools and detailed analytics. This enables users to optimize large AI models and manage various types of visual data, such as documents, charts, graphs, and photographs. The company's advancements in AI technology are anticipated to contribute significantly to the global AI landscape, offering solutions capable of addressing complex challenges across multiple sectors.
Oman's investment in xAI reflects a broader trend among Middle Eastern sovereign wealth funds seeking to invest in advanced technologies and innovative companies. These investments are part of a strategic effort to diversify economies traditionally reliant on oil and gas revenues, positioning them at the forefront of technological innovation and economic transformation.
The collaboration between OIA and xAI signifies a mutual commitment to advancing artificial intelligence capabilities. As xAI continues to develop its AI models and expand its technological infrastructure, partnerships with entities like OIA are expected to play a crucial role in supporting the company's growth and the broader adoption of AI technologies globally.
OIA's strategic investments in companies like xAI and SpaceX not only enhance its international portfolio but also align with Oman's long-term vision of integrating advanced technologies into its economic framework. These investments are poised to facilitate knowledge transfer, foster innovation, and contribute to the sultanate's economic diversification efforts.