Elon Musk’s xAI will be first customer for Nvidia-backed data center in Saudi Arabia

Elon Musk’s xAI will be first customer for Nvidia-backed data center in Saudi Arabia


Tesla CEO Elon Musk (L) talks with Nvidia CEO Jensen Huang during the U.S.-Saudi Investment Forum at the Kennedy Center on Nov. 19, 2025 in Washington, DC.

Win McNamee | Getty Images

Nvidia and xAI said on Wednesday that a large data center facility being built in Saudi Arabia and equipped with hundreds of thousands of Nvidia chips will count Elon Musk’s artificial intelligence startup as its first customer.

Musk and Nvidia CEO Jensen Huang were both in attendance at the U.S.-Saudi Investment Forum in Washington, D.C.

The announcement builds on a partnership from May, when Nvidia said it would provide Saudi Arabia’s Humain with chips that use 500 megawatts of power. On Wednesday, Humain said the project would include about 600,000 Nvidia graphics processing units.

Humain was launched earlier this year and is owned by the Saudi Public Investment Fund. The plan to build the data center was initially announced when Huang visited Saudi Arabia alongside President Donald Trump.

“Could you imagine, a startup company approximately 0 billion dollars in revenues, now going to build a data center for Elon,” Huang said.

The facility is one of the most prominent examples of what Nvidia calls “sovereign AI.” The chipmaker has said that nations will increasingly need to build data centers for AI in order to protect national security and their culture. It’s also a potentially massive market for Nvidia’s pricey AI chips beyond a handful of hyperscalers.

Huang’s appearance at an event supported by President Trump is another sign of the administration’s focus on AI. Huang has become friendly with the president as Nvidia lobbies to gain licenses to ship future AI chips to China.

When announcing the agreement, Musk, who was a major figure in the early days of the second Trump administration, briefly mixed up the size of the data center, which is measured in megawatts, a unit of power. He joked that plans for a data center that would be 1,000 times larger would have to wait.

“That will be eight bazillion, trillion dollars,” Musk joked.

Humain won’t just use Nvidia chips. Advanced Micro Devices and Qualcomm will also sell chips and AI systems to Humain. AMD CEO Lisa Su and Qualcomm CEO Cristiano Amon both attended a state dinner on Tuesday to honor Saudi Crown Prince Mohammed bin Salman.

AMD will provide chips that may require as much as 1 gigawatt of power by 2030. The company said the chips that it would provide are its Instinct MI450 GPUs for AI. Cisco will provide additional infrastructure for the data center, AMD said.

Qualcomm will sell Humain its new data center chips that were first revealed in October, called the AI200 and AI250. Humain will deploy 200 megawatts of Qualcomm chips, the company said.

WATCH: Qualcomm CEO on new AI chips

Qualcomm CEO on new AI chips: Trying to prepare for the next phase of AI data center growth



Source

Atlassian stock soars 28% after earnings show strong cloud, data center growth
Technology

Atlassian stock soars 28% after earnings show strong cloud, data center growth

Atlassian shares jumped more than 28% on Friday after the software company topped Wall Street’s expectations for the fiscal third quarter, reporting strong cloud growth and data center revenue. Here’s how the company did compared with LSEG estimates: Earnings per share: $1.75 adjusted vs. $1.32 expected Revenue: $1.79 billion vs. $1.69 billion expected Atlassian’s stock […]

Read More
Apple earnings, DHS shutdown, ‘Ozempic breath’ and more in Morning Squawk
Technology

Apple earnings, DHS shutdown, ‘Ozempic breath’ and more in Morning Squawk

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Happy Friday. My colleagues and I will be covering Berkshire Hathaway‘s annual meeting tomorrow — its first without Warren Buffett as CEO. You can follow along with our special coverage on TV and online. S&P 500 futures are little changed this morning […]

Read More
Pentagon tech chief says Anthropic is still blacklisted, but Mythos is a separate issue
Technology

Pentagon tech chief says Anthropic is still blacklisted, but Mythos is a separate issue

Defense Department CTO Emil Michael on Friday said Anthropic is still a supply chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities, is a “separate national security moment.” “I think the Mythos issue that’s being dealt with government wide, not just at Department War, is a separate national security moment where […]

Read More