Elon Musk is in talks with data center companies in Saudi Arabia and the UAE to lease computing capacity, as the world’s richest person looks to expand his artificial intelligence startup xAI in places with cheaper energy and friendly regulators, Bloomberg reported.
Two potential partners are in Saudi: Public Investment Fund-backed Humain, which has serious ambition but is less far along than an unnamed, smaller alternative already building a 200-megawatt facility, according to Bloomberg. Musk’s AI company, whose chatbot Grok is a competitor to ChatGPT, has also been in contact with Abu Dhabi AI conglomerate G42 and is mulling data center deals in Africa. Saudi Arabia has the edge because of its investment appetite and access to advanced chips.
Capturing customers for their respective digital infrastructure pushes is crucial to both Saudi Arabia and the UAE, with employment opportunities and revenue from energy consumption on the line.