According to a Reuters report, citing CEOs of the three companies, the joint venture has landed its first customer.
- The report noted that Luma AI is the first customer and has contracted to purchase the entire 100-megawatt capacity.
- According to a Semafor report on Tuesday, Humain was planning to announce multi-gigawatt data center buildings in collaboration with companies including Amazon, AMD, xAI, and GlobalAI.
- The Reuters report said that for the initial 100-megawatt buildout, Cisco will provide networking equipment and other infrastructure, and AMD will provide its MI450 AI chips.
Advanced Micro Devices (AMD), Cisco Systems (CSCO), and Humain, a Saudi Arabia sovereign wealth fund-backed artificial intelligence company, are reportedly forming a joint venture to build data centers in the Middle East.
According to a Reuters report, citing CEOs of the three companies, the joint venture has landed its first customer. The report added that the joint venture is yet to be named and will kick off with a 100-megawatt data center project in Saudi Arabia.
The report noted that Luma AI is the first customer. “They will be the first customer of this cluster,” Humain CEO Tareq Amin told Reuters. He said that Luma AI has contracted to purchase the entire 100-megawatt capacity.
AI Deals
Several of the tech companies, including Amazon and Microsoft, have recently signed deals to set up data centers, a move that comes amid concerns about an AI boom. Even investors, including Michael Burry, have raised concerns about certain big-name tech stocks, such as Nvidia Corp and Palantir.
On Tuesday, Amazon (AMZN)-backed AI startup Anthropic announced that it has committed to buying $30 billion in Azure compute capacity.
According to a Semafor report on Tuesday, Humain was planning to announce multi-gigawatt data center buildings in collaboration with companies including Amazon, AMD, xAI, and GlobalAI.
Joint Venture Details
The Reuters report noted that AMD and Cisco are minority shareholders and will share in the profit and loss of the endeavor, according to the company executives. AMD CEO Lisa Su said Humain will take the lead in the joint venture. “We will together really have responsibility for ensuring that it’s successful,” Su said, as per the report.
The report noted that the joint venture looks to be present in markets including Asia, Europe, India, the Middle East, and Africa, as per Amin. The plans include building up to one gigawatt of new data centers to support the joint venture by 2030, the Reuters report added.
It further stated that for the initial 100-megawatt buildout, Cisco will provide the networking equipment and other infrastructure, and AMD will provide its MI450 AI chips.
Retail sentiment on AMD was in the ‘bearish’ territory, while on Cisco it was in the ‘extremely bullish’ territory, according to data from Stocktwits.
Shares of AMD have gained nearly 87% this year and Cisco stock has jumped over 32% in the same period.
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