Saudi Arabia is significantly expanding its investment in artificial intelligence through numerous joint ventures with American tech companies, aiming to become a global AI powerhouse. This strategic push coincides with Crown Prince Mohammed bin Salman's visit to the United States, signaling a deepening of ties between the two nations.
During a US-Saudi investment forum, AI company Humain announced partnerships with prominent American firms including xAI, Cisco, AMD, and Qualcomm. The country is seeking to attract foreign investment and diversify its economy away from oil.
For American AI companies, Saudi Arabia offers crucial resources for expansion, including substantial funding, vast available land, and affordable energy, which are essential for building and powering large-scale data centers. Elon Musk announced that xAI will establish its first major data center outside the US in Saudi Arabia, in collaboration with Humain.
This facility will be a 500-megawatt center and will utilize xAI's technology across the country. The data center will be powered by chips from Nvidia, whose founder, Jensen Huang, was present at the event alongside Musk and Saudi officials.
The Saudi Minister of Communications and Information Technology, Abdullah Alswaha, highlighted these collaborations as concrete steps in the kingdom's AI strategy, which includes a framework and partnership with the US. Furthermore, the US is reportedly set to approve the first sales of advanced AI chips to Humain.
Amazon Web Services also announced plans for a 100-megawatt data center in Riyadh with an ambition for a gigawatt, which will also be powered by Nvidia's infrastructure, involving the deployment and management of up to 150,000 AI accelerators. The need for extensive space and energy for data centers is a growing challenge, and Saudi Arabia is positioning itself as a solution to support the rapid growth of AI companies and maintain the US lead in the global AI race.
This increased investment from Saudi Arabia also plays a role in Crown Prince Mohammed bin Salman's efforts to improve his standing in the United States, particularly after facing international criticism. He announced that Saudi Arabia plans to invest $1 trillion in the US, an increase from a previously stated $600 billion, signaling a significant economic commitment.
