Saudi listed MIS sells its entire stake in Elon Musk’s xAI for $4.24 million, booking a gain and strengthening liquidity, according to a Tadawul filing.
Saudi Arabia based Al Moammar Information Systems (MIS) has sold its entire stake in xAI for $4.24 million, marking an exit from the artificial intelligence company founded by Elon Musk. The transaction was disclosed in a filing to the Saudi Exchange (Tadawul), where MIS is publicly listed.
MIS said the sale generated a realized gain compared with its original investment, though it did not disclose the initial purchase price or the exact timing of the stake acquisition. The company added that the proceeds from the transaction will be used to support its core operations and strengthen liquidity, according to the Tadawul disclosure.
Founded in 1979, Al Moammar Information Systems is one of Saudi Arabia’s largest IT services providers, offering systems integration, cloud services, cybersecurity, and managed services to government and enterprise clients. The company plays a significant role in Saudi Arabia’s digital infrastructure landscape and is closely aligned with national digital transformation initiatives under Vision 2030.
xAI, which was founded in 2023 by Elon Musk, focuses on developing large scale artificial intelligence models and products, including the Grok chatbot integrated into the social media platform X. The company has attracted significant global attention and capital, raising billions of dollars from investors since its launch, according to reporting by Bloomberg and Reuters.
MIS’s divestment comes amid heightened investor interest in artificial intelligence companies and increased volatility around valuations in the sector. Globally, AI startups accounted for more than 25% of total venture capital funding in 2024, according to data published by Crunchbase, as enterprises and investors continued to prioritize AI driven technologies despite broader market uncertainty.
For Saudi listed companies like MIS, minority investments in global technology firms have increasingly been used to gain exposure to emerging technologies while maintaining focus on core services. The sale of the xAI stake reflects a broader trend of portfolio rebalancing as public companies reassess non-core holdings amid changing market conditions.
MIS said the transaction would have a positive impact on its financial results for the period in which the sale is recognized. The company did not indicate whether it plans to reinvest the proceeds into additional technology ventures or return capital to shareholders.
The exit adds to a growing list of Saudi corporate transactions tied to artificial intelligence, underscoring the Kingdom’s expanding engagement with global AI ecosystems even as local companies balance exposure to fast moving technology investments.
