
Elon Musk tried to derail a major artificial intelligence infrastructure deal in the Middle East after learning that his startup, xAI, would be excluded from the initiative, CNBC has confirmed.

Prior to Donald Trump’s return to the presidency in 2025, relations between Elon Musk and the Middle East were rather strained. Even though Saudi funds had invested in Tesla and X, friction persisted, notably due to the Khashoggi affair, disagreements over freedom of expression and Musk’s criticism of certain regimes in the region.
Since Trump’s return to the White House, Musk’s relations with the Gulf have strengthened. In April 2025, just before the Middle East tour, xAI bought X in a $33 billion deal, financially backed by Saudi Arabia’s Kingdom Holding and the Qatar Investment Authority.


Musk used the trip to attend the Saudi-American Investment Forum in Riyadh, where he announced his ambition to deploy Tesla’s robotaxis in Saudi Arabia and unveiled Optimus humanoid robots.

By discreetly joining Donald Trump’s Middle East tour, Elon Musk was able to exploit a favorable diplomatic context to advance his interests. Despite a few setbacks, he achieved tangible results, such as the green light for Starlink in Saudi Arabia and increased exposure for Tesla.