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Elon Musk's xAI is in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The startup is in discussion with two potential partners: Humain, a Saudi-backed AI company offering xAI several gigawatts of capacity, and another company building a smaller but more immediately available 200-megawatt facility, according to the report.
The Humain proposal remains distant, Bloomberg reported, as the startup launched by Saudi Arabia's sovereign wealth fund is yet to break ground on much of the infrastructure it has pledged to build.
The other company, which Bloomberg did not name, is already working on the 200-megawatt facility, making it a more realistic short-term option for xAI, the report said.
According to data available on Argaam, Crown Prince Mohammed bin Salman bin Abdulaziz, Chairman of the Council of Ministers, launched last month Humane, a company owned by the Public Investment Fund (PIF). The company aims to develop and manage artificial intelligence solutions and technologies and invest in the sector's ecosystem.
In the same month, NVIDIA CEO Jensen Huang announced a strategic partnership with Humane to build a massive infrastructure for advanced computing and artificial intelligence in the Kingdom.
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