In a significant development for global artificial intelligence infrastructure, Elon Musk's AI startup xAI has joined forces with Saudi Arabia's state-backed venture Humain to construct a massive 500-megawatt AI data center in the kingdom. The groundbreaking announcement was made during the high-profile US-Saudi Investment Forum in Washington DC on Wednesday, November 19, 2025.
High-Profile Announcement at US-Saudi Forum
The strategic partnership was revealed by Elon Musk himself during his appearance at the Kennedy Center in Washington DC, where he shared the stage with Nvidia CEO Jensen Huang. The event witnessed participation from top global leaders, including scheduled addresses by US President Donald Trump and Saudi Crown Prince Mohammed bin Salman, highlighting the political significance of this emerging technological cooperation between the two nations.
The forum, which brought together visionaries and leaders shaping global investment landscapes, served as the perfect platform for this monumental announcement. Photographs from the event captured Musk and Huang engaging in discussions that potentially laid the groundwork for this massive AI infrastructure project.
Saudi Arabia's Ambitious AI Push
This partnership represents one of the largest Saudi investments in AI infrastructure to date and significantly advances Riyadh's ambition to establish itself as a global artificial intelligence hub. The 500-megawatt data center, substantially larger than typical AI facilities, will rely heavily on Nvidia's graphics processing units (GPUs), which are considered the industry gold standard for training and deploying sophisticated AI models.
Humain, as a major player in Saudi Arabia's AI strategy, has been actively working with Nvidia and other semiconductor suppliers. However, the kingdom had previously faced challenges due to US export restrictions on advanced AI chips. In a crucial development, Bloomberg reported on Tuesday that the Trump administration is preparing to approve sales of high-end Nvidia chips to Humain, effectively removing a significant barrier to Saudi Arabia's AI acceleration plans.
Strategic Implications for xAI and Global AI Race
For Elon Musk, this partnership provides xAI with a powerful new infrastructure base as the company rapidly expands following his departure from OpenAI, which he co-founded. Musk has positioned xAI as a direct competitor to OpenAI and Anthropic, driving intense competition in the race to develop more powerful AI models and secure access to high-performance computing resources.
The collaboration offers Saudi Arabia a dramatic leap forward in its technological capabilities while giving xAI access to substantial computational resources powered by cutting-edge Nvidia technology. As US officials finalize chip export approvals and construction plans advance, more details regarding the project timeline, financing arrangements, and specific facility location are expected to emerge shortly.
This development marks a significant milestone in global AI infrastructure development and underscores the growing strategic partnerships between technology giants and nations aspiring to lead in the artificial intelligence revolution. The project represents a convergence of technological ambition, political cooperation, and industrial strategy that could reshape the global AI landscape in the coming years.
