The Oman Investment Authority (OIA), the sultanate’s sovereign wealth fund, has made a strategic move into the artificial intelligence sector by acquiring a stake in xAI, the AI-focused company founded by tech billionaire Elon Musk. The exact size and value of the investment remain undisclosed.
Advancing Technology Investments
This investment aligns with Oman’s vision of expanding its digital economy, which aims to constitute 10% of the nation’s GDP. The Oman News Agency reported that the acquisition would allow the country to invest in advanced technologies across multiple sectors, reinforcing its strategy of economic diversification away from oil dependency.
The OIA has been actively building its technology portfolio. Earlier this year, it collaborated with Abu Dhabi-based ADQ to establish a $180 million technology-focused fund designed to support tech innovation in the Middle East.
Regional and Global Investments
Oman’s move echoes a broader trend in Gulf economies, which have been channeling significant investments into technology and artificial intelligence. Notably, the Qatar Investment Authority invested $375 million in Twitter (now X) during Musk’s acquisition of the social media platform in 2022. Abu Dhabi-based IHC also secured a 94% stake in a private equity fund with investments in Musk’s SpaceX in 2020.
Elon Musk’s Vision for xAI
Founded in July 2023, xAI is Musk’s ambitious venture aimed at “understanding the universe” and uncovering the “true nature of reality.” Its primary offering, Grok, is a conversational AI tool available exclusively to premium users of X. Musk has described Grok as a significant step forward in AI, with the upcoming Grok-3 promising groundbreaking advancements.
Driving the Gulf’s Digital Economy
The OIA’s investment in xAI is a testament to the Gulf’s growing interest in leveraging artificial intelligence to fuel economic growth. By aligning with global technology leaders like Elon Musk, Oman is positioning itself at the forefront of digital transformation in the region.
As AI continues to shape the future, investments like these signify a shift toward a more diversified and tech-driven economy, underscoring the strategic importance of partnerships in the global tech ecosystem.
