Saudi Arabia's state-backed artificial intelligence firm Humain said Wednesday it had invested $3 billion in US billionaire Elon Musk's xAI. The investment made Humain a "significant minority shareholder", the company said in a statement. It added that its xAI holdings would be "converted into SpaceX shares" after the rocket company announced it was taking over the AI start-up earlier this month as Musk pushes to unify his many business interests.

Humain, backed by Saudi Arabia's nearly trillion-dollar sovereign wealth fund, launched last May as the world's biggest oil exporter bets on AI to help diversify its economy.

On Friday, several sources told AFP the country was scaling back luxury resort plans on the Red Sea, which could deal a blow to hopes of transforming the coast into a top destination for tourists. NEOM, Saudi Arabia's futuristic new city, is also reported to have hit major problems.

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