Elon Musk’s xAI in Talks to Boost AI Infrastructure in Saudi Arabia

Elon Musk's xAI is negotiating to lease data center space in Saudi Arabia

Quick overview

  • Elon Musk's xAI is in talks to lease data center space in Saudi Arabia to enhance its infrastructure.
  • Humain, a Saudi-backed AI company, is one of the two firms negotiating with xAI for data center capacity.
  • The other company is constructing a 200 megawatt facility, making it a more immediate option for xAI.
  • Bloomberg reports that Humain's proposal is delayed due to insufficient infrastructure development.

Elon Musk’s xAI is negotiating to lease data center space in Saudi Arabia as part of its plan to expand its infrastructure in places with political clout and inexpensive energy.

Humain, a Saudi-backed AI company that provides xAI with several gigawatts of capacity, is one of the two companies the startup is reportedly negotiating with.

The other company is building a 200 megawatt facility that will be more readily available.

Bloomberg claims that because the Saudi Arabian startup, backed by a sovereign wealth fund, has not yet started building a significant amount of the infrastructure it has promised to build, the Humain proposal is still a ways off.

The 200-megawatt facility is already under construction by the other company, which Bloomberg did not identify, making it a more practical short-term solution for xAI, the report stated.

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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