In Riyadh at the Saudi-U.S. Investment Forum, Elon Musk revealed that Starlink, part of SpaceX, had secured a deal with Saudi Arabia to provide internet services for the country’s maritime and aviation sectors. This announcement followed another significant deal involving Musk’s ventures. Just weeks earlier, X Corp., Musk’s social media company, refinanced part of its $12 billion debt with a new $1.23 billion loan. Among the entities assisting in this refinancing was Kingdom Holding Company, chaired by Saudi billionaire Prince Alwaleed Bin Talal Alsaud, according to PitchBook. The exact amount contributed by Kingdom Holding remains undisclosed. A spokesperson for Kingdom Holding declined to comment, and X Corp. did not respond to inquiries. This involvement by the Saudi firm has not been previously reported.
Kingdom Holding has vested interests in Musk’s ventures, being a notable investor in xAI Holdings, which encompasses X and Musk’s AI startup. The firm maintained its investment in Twitter when Musk privatized it in 2022 and participated in subsequent funding rounds. Recently, Prince Alwaleed shared an AI-generated image of himself observing a chess game between Musk and Trump.
Historically, relations between Musk and Saudi entities have fluctuated. In 2018, the Saudi sovereign wealth fund held nearly 5% of Tesla before Musk’s misleading tweet about securing funding from them to privatize the company. Following the murder of journalist Jamal Khashoggi, Musk distanced himself from Saudi investments, reportedly leading to the sale of most Tesla shares by the Saudis in 2020.
The current collaboration reflects a broader acceptance of Musk by Gulf investors, aligning with his global influence and political ties as an advisor to Donald Trump. Musk has actively sought foreign capital, engaging sovereign wealth funds from Qatar, Oman, Kuwait, and the UAE. Qatar’s investment authority contributed to Musk’s Twitter acquisition and expanded partnerships with Tesla and Starlink. Oman and Kuwait also invested in Musk’s xAI, while the UAE engaged with SpaceX and The Boring Company.
Musk’s extensive business ties raise concerns about potential conflicts of interest, especially given his proximity to political figures. Critics emphasize the importance of ethical standards to ensure public interests are prioritized over private gains.
— new from Forbes