Elon Musk, Nvidia unveil deal with Saudi state-backed firm to build massive AI data center

Core Insights - Elon Musk's xAI and Nvidia are partnering with Saudi Arabia's state-backed AI firm, Humain, to establish a significant AI data center in Saudi Arabia, which will be xAI's largest site outside the US, consuming up to 500 megawatts of electricity [1][3] - The deployment of Musk's xAI chatbot, Grok, throughout Saudi Arabia is part of the agreement [1] - The deal's financial details were not disclosed, but it follows the US's apparent approval for Saudi Arabia to purchase American semiconductors, which had previously been restricted [2][3] Company Developments - Humain, funded by Saudi Arabia's $1 trillion sovereign wealth fund, aims to develop up to one gigawatt of AI infrastructure by 2030, indicating a significant commitment to scaling AI capabilities [8] - Humain's CEO, Tareq Amin, emphasized that the partnership will create unmatched scale in AI infrastructure [8] - The collaboration with Cisco and AMD was also announced, further strengthening Humain's technological foundation [8] Industry Context - The establishment of AI data centers is crucial for competing in the AI sector, with most currently located in the US, Europe, and China [11] - Humain aims to handle 6% of the global AI workload in the coming years, positioning itself as a key player in the AI landscape [12] - American tech firms are increasingly seeking partnerships in the Middle East to fund expensive AI infrastructure projects, despite the region's complex political landscape [12]