Elon Musk’s artificial intelligence startup, xAI, is reportedly in talks to secure data center capacity in Saudi Arabia, according to Bloomberg News, which cited sources familiar with the matter.
The company is said to be considering partnerships with two different entities. One of them is Humain, a Saudi-backed AI firm offering several gigawatts of potential capacity. However, this option remains speculative, as much of Humain’s promised infrastructure is still in the early stages of development.
The second potential partner, whose name hasn’t been disclosed, is currently developing a 200-megawatt data center. This makes it a more viable short-term solution for xAI’s immediate needs, the report said.
Both xAI and Humain have not yet responded to requests for comment from Reuters.
As xAI intensifies efforts to scale its data processing capabilities, it aims to compete with leading AI platforms like OpenAI’s ChatGPT and Anthropic’s Claude. The company’s Tennessee-based supercomputer, Colossus, is already considered among the largest globally.
Saudi Arabia’s Public Investment Fund (PIF), which supports Humain, may also play a significant role in future funding rounds for xAI. According to a recent Financial Times report, the AI startup could be valued between $170 billion and $200 billion. However, Musk has clarified that the company is not currently seeking investment.
