CEO of xAI Elon Musk announced on Wednesday plans to build a massive new data center development in Saudi Arabia, working in tandem with the Trump administration’s agenda to win the global artificial intelligence race.

AI, the European advanced artificial intelligence and compute infrastructure company founded by Bijan Burnard, today signed a multi-year Memorandum of Understanding (MoU) with the Kingdom of Saudi Arabia’s Public Investment Fund (PIF).

Elon Musk and Jensen Huang shared plans to build some of the world’s largest data centers in the Middle East as part of Mohammed bin Salman’s visit to the United States.

Saudi Arabia is strengthening its ties with American AI companies — announcing a flurry of new joint ventures worth billions of dollars. The country seeks to make its mark in the AI industry as its de facto leader,

Advanced Micro Devices , Cisco Systems and Saudi Arabian artificial intelligence startup Humain are forming a joint venture to build data centers in the Middle East and have landed their first customer,

Elon Musk said xAI (X.AI) plans to develop a 500-megawatt data center in Saudi Arabia with the kingdom’s state-backed AI venture Humain that will rely on chips from Nvidia (NVDA). Musk announced the plans alongside Nvidia's CEO Jensen Huang at a U.

The deal follows talks between President Trump and Saudi Arabia’s Crown Prince Mohammed bin Salman.

Hollywood-oriented AI is getting a major boost from the Saudi government, which is expected to announce Wednesday that it will anchor a $900 million funding round for Luma AI, the San Francisco company building models meant partly for entertainment.

Luma AI, the frontier artificial intelligence company building multimodal AGI, today announced it has raised $900 million in Series C funding, led by HUMAIN, a PIF company delivering global full-stack AI solutions, with significant participation from AMD Ventures, and existing investors Andreessen Horowitz, Amplify Partners, and Matrix Partners.

The Trump administration has been pushing for AI development, including through a plan to build data centers at the national labs and support for Stargate, an initiative led by OpenAI and Oracle to invest at least $500 billion in AI and data centers at U.S. locations over four years.

Saudi Arabia wants to use the financial muscle of its near-$1tn Public Investment Fund to become an international leader in AI. Prince Mohammed said during his meeting with the US president in the Oval Office on Tuesday that his country planned to spend about $50bn on AI “in the short term”.

Microsoft has confirmed the completion of three "availability zones" within its Azure data center region in Saudi Arabia. This development is critical to solidifying the Kingdom's regional leadership in artificial intelligence (AI).