Wednesday, 19 November 2025

Saudi Arabia Backs Elon Musk’s xAI With Data Center Deal

THE NEW YORK TIMES: Mr. Musk’s xAI will work with the Saudi artificial intelligence company Humain on a new data center, part of Crown Prince Mohammed bin Salman’s effort to diversify his kingdom’s economy.

Elon Musk has been hunting for partners to grow his artificial intelligence start-up xAI as it tries to keep pace with OpenAI, Anthropic and Google.

Crown Prince Mohammed bin Salman of Saudi Arabia has been trying to diversify his oil-rich kingdom’s economy by making it a global hub for tech and artificial intelligence.

On Wednesday, their intersecting interests led to a deal.

Mr. Musk’s xAI, which makes the Grok chatbot, agreed to work with the state-backed Saudi company Humain to build a new data center in the Persian Gulf kingdom. The project is set to consume as much as 500 megawatts of electricity, which would make it xAI’s biggest data center outside the United States. Humain and xAI did not disclose the value of the deal.

The project was part of a package of military and tech deals announced on Wednesday during Prince Mohammed’s visit to Washington. The United States and Saudi Arabia appear to have reached an agreement that clears the path for the kingdom to buy the U.S. semiconductors needed to power artificial intelligence, as the United States has used A.I. chips as part of geopolitical diplomacy. » | Adam Satariano and Paul Mozur | Wednesday, November 19, 2025