Joint Venture in AI and Data Centers: AMD, Cisco, and Humain Team Up

In a groundbreaking collaboration, Advanced Micro Devices (AMD), Cisco Systems, and the Saudi Arabian artificial intelligence startup Humain are joining forces to establish a significant presence in the Middle East technology sector. This strategic partnership, announced by the CEOs of the respective companies, aims to spearhead the development of data centers in the region, with the exciting news that they have already secured their first major customer.

This new venture, which has yet to be named, will kick off with an ambitious 100-megawatt data center project located in Saudi Arabia. Humain has committed to supplying this computing capacity to Luma AI, a generative video startup that will be its inaugural client. Humain’s CEO, Tareq Amin, disclosed that Luma AI has contracted to utilize the entirety of the data center’s impressive power.

“They will be the first customer of this cluster,” Amin remarked, emphasizing the significance of the initial customer and the scale of the project, which has not been disclosed before now.

This joint venture emerges from a series of agreements forged during former U.S. President Donald Trump’s visit to Riyadh in May. There are expectations of further collaboration as Saudi Crown Prince Mohammed bin Salman and Trump convene in Washington this week. Backing for Humain comes from Saudi Arabia’s sovereign wealth fund, reflecting the nation’s aspirations to bolster its technological infrastructure, leveraging its vast land availability and low energy costs.

American tech giants like Nvidia and Qualcomm also secured partnerships that same month, highlighting the increasing interest and investment in Saudi Arabia’s technology landscape.

In a notable stride, AMD had previously announced a massive $10 billion collaboration with Humain, which includes the provision of its leading-edge AI chips. Within this joint venture, both AMD and Cisco will hold minority shares and share in both profit and loss, with Humain taking the lead role in operations. AMD’s CEO Lisa Su affirmed the joint commitment to ensure the project’s success, stating, “We will together really have responsibility for ensuring that it’s successful.”

While specifics about the financial arrangements remain undisclosed, the shared vision between these technological powerhouses aims to tap into a market stretching across Asia, Europe, India, the Middle East, and Africa, encompassing a staggering population of approximately 4.5 billion.

The ambitious plans outline developments that may reach up to a gigawatt of new data centers to support their operations, projected for completion by 2030. For the initial 100-megawatt project, Cisco will provide critical networking equipment and other necessary infrastructure, while AMD will supply its cutting-edge MI450 AI chips. Notably, this first phase of construction is scheduled for 2026 and is committed to utilizing renewable energy sources entirely, according to Amin.

Amin also indicated that Humain is already receiving purchase orders for future expansions, further cementing the venture’s growth trajectory.

As an integral part of this collaboration, Cisco will leverage its extensive salesforce to enhance capacity sales for the forthcoming data centers. Cisco’s CEO Chuck Robbins highlighted the company’s long history of concocting sales incentives and intends to apply this expertise to facilitate Humain’s market penetration.

Thus, the union of AMD, Cisco, and Humain stands as a testament to the transformative power of strategic partnerships in the AI and data sectors, poised to redefine technological infrastructure in the Middle East.

Source: finance.yahoo.com/news/exclusive-amd-cisco-saudis-humain-162146934.html