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

By Eric November 20, 2025

Elon Musk, the CEO of Tesla and SpaceX, recently met with Saudi Arabia’s Crown Prince Mohammed bin Salman in Washington, D.C., to announce a significant partnership between Musk’s artificial intelligence company, xAI, and the Saudi-backed firm Humain. This collaboration marks a pivotal moment for xAI, as it represents the company’s largest data center initiative outside the United States. The deal underscores the growing importance of international partnerships in the tech sector, particularly in the realm of artificial intelligence, where data and computing power are crucial for innovation and development.

The agreement with Humain is expected to bolster xAI’s capabilities in processing vast amounts of data, which is essential for training advanced AI models. By establishing a data center in Saudi Arabia, xAI aims to leverage the country’s resources and strategic location to enhance its research and development efforts. This move aligns with Saudi Arabia’s Vision 2030 initiative, which seeks to diversify the economy and position the nation as a global leader in technology and innovation. The partnership is not only beneficial for xAI but also highlights Saudi Arabia’s commitment to investing in cutting-edge technologies and fostering a knowledge-based economy.

This collaboration could have far-reaching implications for both companies and the broader tech landscape. For xAI, the new data center will provide access to a wealth of data and computing resources, enabling them to accelerate their AI projects and enhance their competitive edge in the market. For Saudi Arabia, the deal signifies a step towards becoming a hub for AI and technology in the Middle East, attracting further investments and talent to the region. As Musk and bin Salman continue to explore opportunities for collaboration, this partnership may pave the way for future advancements in AI that could impact various industries globally, from healthcare to transportation.

Elon Musk and Crown Prince Mohammed bin Salman of Saudi Arabia in Washington on Wednesday. The deal between xAI and the Saudi-backed company Humain is set to be xAI’s biggest data center outside the United States.

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