Elon Musk: xAI collaborates with Saudi Arabia to build a 500 MW data center in Saudi Arabia, with NVIDIA participating

Elon Musk stated that his artificial intelligence startup xAI plans to collaborate with the Saudi Arabia state-backed AI company Humain to build a 500-megawatt data center in Saudi Arabia, using NVIDIA chips.

Musk announced the plan on Wednesday at a U.S.-Saudi investment forum in Washington, alongside NVIDIA CEO Jensen Huang. The two spoke before remarks from U.S. President Trump and Saudi Crown Prince Mohammed bin Salman.

After a fierce split with OpenAI, which he co-founded, Musk has invested significant resources into his latest project, xAI. The company has developed the chatbot Grok and has been competing with OpenAI and Anthropic for advanced AI models and investment funding.

Media reports previously indicated that Saudi's Humain was in talks with xAI to provide several gigawatts of computing power. During Wednesday's event, Musk mistakenly referred to the scale of the deal as 500 gigawatts instead of the actual figure.

Although Humain stated it is working with NVIDIA and other chip suppliers, Saudi Arabia has not yet received U.S. approval to purchase advanced semiconductors. Bloomberg reported on Tuesday that the Trump administration plans to approve the sale of chips to Humain soon