Saudi Arabia has announced a series of multibillion-dollar partnerships with leading American AI companies during Crown Prince Mohamed bin Salman’s visit to the United States, signaling a major push to establish the kingdom as a global AI powerhouse while deepening US-Saudi economic ties.
The announcements were made at a US-Saudi investment forum in Washington on Wednesday, November 19, 2025. Humain, an AI company backed by Saudi Arabia’s sovereign wealth fund, revealed joint ventures with xAI, Cisco, AMD, and Qualcomm, highlighting the kingdom’s strategic shift towards technology and innovation as part of its broader economic diversification efforts.
Elon Musk, founder of xAI and the world’s richest man, declared that his company will develop a massive 500-megawatt data center in Saudi Arabia in collaboration with Humain. This facility, xAI’s first large-scale data center outside the United States, will host the Grok chatbot and be powered by advanced chips from Nvidia, whose CEO Jensen Huang participated in the event, emphasizing the critical role of semiconductor technology in advancing AI capabilities.
Nvidia’s involvement was central to the discussions, with Saudi Minister of Communications and Information Technology Abdullah Alswaha highlighting the partnership’s scale. He stated, “Today we’re going big with Elon and Jensen,” referencing the alignment with a newly announced AI strategic framework between the US and Saudi Arabia, which aims to foster innovation and secure competitive advantages in the global AI race.
In a related development, Alswaha announced a 100-megawatt data center for Amazon Web Services (AWS) with ambitions to expand to a gigawatt. AWS plans to deploy and manage up to 150,000 AI accelerators in Riyadh, leveraging Nvidia’s infrastructure to support the growing computational demands of AI systems and enhance Saudi Arabia’s digital infrastructure.
Saudi Arabia’s foray into AI addresses key challenges faced by US companies, such as the need for abundant funding, vast space for data centers, and cheap energy resources. This strategic move positions the kingdom as a potential hub for AI development, countering concerns that China might outpace the US in energy production and infrastructure for AI systems, thereby reshaping global technological dynamics.
The investment initiatives also carry significant political weight, aiding Crown Prince bin Salman’s efforts to rehabilitate his image in the US after the Jamal Khashoggi incident. During an Oval Office meeting, the crown prince unexpectedly pledged $1 trillion in investments to the US, up from a previously stated $600 billion, surprising President Donald Trump and underscoring the economic and diplomatic stakes involved.
These partnerships mark a pivotal step in Saudi Arabia’s economic transformation, leveraging its resources to fuel the next wave of technological innovation. The collaborations are expected to accelerate AI advancements globally, strengthen US-Saudi relations, and potentially influence future policy and investment decisions in an increasingly competitive international landscape.
