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US Startup Partners With Saudi Arabia for AI Data Centers

Created at 31 Aug · 10:16 AM1 source↑ Market-relevant
IN SHORT

Together AI will use compute from Saudi Arabia's new Humain company for AI model development, bypassing U.S. restrictions. This deal is part of Saudi Arabia's Vision 2030 to diversify from oil and become a regional AI leader, with U.S. backing.

Key Numbers

$400 billionadditional U.S. investment sought from Saudi Arabia
$600 billionpromised investment from Saudi Arabia
5 yearstimeline for data center construction
500 megawattsprojected data center capacity
18,000Nvidia chips for initial Saudi supercomputer deployment

Who's Involved

Together AI
open-source AI model provider partnering with Saudi Arabia
Humain
new Saudi company developing and managing AI infrastructure
Saudi Arabia
Kingdom investing heavily in AI development and data centers
Donald Trump
granted increased access to U.S. AI chips for Saudi Arabia and UAE
Nvidia
partnering with Humain to leverage its AI chips and infrastructure
AMD
partnering with Humain to leverage its AI chips and infrastructure
Crown Prince Mohammed bin Salman
driving Saudi Arabia's AI ambitions and launching Humain
Public Investment Fund
Saudi sovereign wealth fund backing Humain
US Startup Partners With Saudi Arabia for AI Data Centers

↳ Why This Matters

This partnership signifies a major step in Saudi Arabia's ambition to become a global AI hub, leveraging U.S. technology and investment to diversify its economy and enhance its geopolitical standing, while also positioning U.S. tech companies to benefit from significant capital investment.

Key facts

  • Together AI will utilize compute resources from Saudi Arabia's new AI company, Humain.
  • This partnership aims to bypass U.S. restrictions on data centers.
  • Saudi Arabia plans to build large AI data centers equipped with advanced Nvidia chips.
  • The deal is part of Saudi Arabia's Vision 2030 initiative to diversify its economy.
  • The U.S. has eased export controls on advanced AI chips for Saudi Arabia and the UAE.

Together AI, a U.S. startup focused on open-source artificial intelligence models, has announced a strategic partnership with Humain, a newly launched Saudi Arabian company, to utilize compute power for AI development within the Kingdom. This collaboration allows Together AI to bypass potential U.S. backlash concerning data center operations.

The deal is part of Saudi Arabia's broader Vision 2030 initiative, aimed at diversifying its economy away from oil dependency and establishing itself as a regional AI leader. Crown Prince Mohammed bin Salman has spearheaded these ambitions, with the recent launch of Humain by the Kingdom's Public Investment Fund underscoring the strategic priority of AI development.

In conjunction with this partnership, U.S. President Donald Trump has eased prior export control restrictions, granting Humain and UAE-based AI firm G42 increased access to advanced U.S.-made AI chips, particularly from Nvidia. Humain has also announced strategic collaborations with Nvidia and AMD to integrate their AI chips and infrastructure, with plans to construct massive AI data centers in Saudi Arabia over the next five years. These facilities are projected to house hundreds of thousands of Nvidia's advanced chips and have a capacity of up to 500 megawatts, with an initial deployment of 18,000 chips for a Saudi supercomputer.

Experts view these U.S.-Saudi negotiations around AI as a significant geopolitical move, with substantial financial stakes. The U.S. government seeks to maintain Saudi Arabia's alignment amidst China's growing technological influence in the Middle East. The White House has described the agreements as historic and transformative, heralding a new era of partnership between the two nations.

Frequently asked questions

Humain is a new company launched by Saudi Arabia to develop and manage AI infrastructure, including large data centers, within the Kingdom.

Saudi Arabia aims to diversify its economy away from oil dependency through its Vision 2030 initiative and become a regional leader in AI and technology.

The U.S. is facilitating access to advanced AI chips, particularly from Nvidia, and its tech companies are seeking investment opportunities in Saudi Arabia's AI development.

The partnership is seen as a strategic move to keep Saudi Arabia within the U.S. sphere of influence, countering China's growing technological presence in the Middle East.

What Happens Next

01Humain will construct AI data centers in Saudi Arabia over the next five years.
02The first deployment will involve 18,000 Nvidia chips for a Saudi supercomputer.

How It Developed

Together AI announced a partnership with Saudi Arabia's Humain for AI compute.
Saudi Arabia aims to bypass U.S. backlash over data centers.
Crown Prince Mohammed bin Salman launched Humain to develop and manage AI in Saudi Arabia.
Trump granted Humain and UAE-based G42 increased access to U.S.-made AI chips.
Humain announced partnerships with Nvidia and AMD to leverage AI chips and infrastructure.
Humain will build massive AI data centers in Saudi Arabia.
The country plans to construct data centers with hundreds of thousands of Nvidia chips over five years.
The first deployment will include 18,000 Nvidia chips for a Saudi supercomputer.

Sources

T1
U.S. Start-Up Partners With Saudi Arabia for Data CenterThe New York Times
T2
Why the U.S. is powering Saudi Arabia's AI surge with Nvidia chipsfortune.com

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