Nvidia to Deliver 18,000 AI GPUs for $10 Billion Saudi Project

Key Takeaways

1. Nvidia’s shipment includes 18,000 GB300 GPUs and InfiniBand networking for a 500-megawatt facility in Saudi Arabia.
2. AMD will supply additional accelerators and software for data centers connecting Saudi Arabia with the US as part of a $10 billion infrastructure project.
3. The partnership with Saudi clients expands the market for high-performance AI silicon, boosting stock prices for Nvidia and AMD.
4. The US government has paused proposed export restrictions on advanced chips to Saudi Arabia, facilitating this agreement.
5. Humain plans to integrate new hardware with Arabic language models to establish a regional hub for generative AI research.

Nvidia’s CEO Jensen Huang announced at the Saudi-US Investment Forum in Riyadh that the first shipment will feature 18,000 Grace Blackwell GB300 GPUs along with InfiniBand networking. This setup is sufficient to power an initial 500-megawatt facility.

AMD’s Role in the Initiative

On the other hand, AMD will provide extra accelerators and software aimed at data centers that will connect the Kingdom of Saudi Arabia with the United States, as stated in a different announcement. This combined order is part of a larger $10 billion infrastructure project that was revealed by the chair of Humain, Crown Prince Mohammed bin Salman.

Impact on the AI Market

The partnership with sovereign clients like Humain expands the market for high-performance AI silicon, which is primarily controlled by the biggest cloud service providers. Following the news, Nvidia’s stock increased by as much as 6.4 percent during trading in New York, while AMD’s shares rose by up to 4.5 percent.

Changes in Export Controls

This agreement comes after the US government’s choice to put on hold proposed “AI diffusion” export restrictions that would have limited advanced chip shipments to Saudi Arabia. Additionally, Saudi regulations that mandate the storage of local personal and financial data have prompted companies like Amazon, Google, and Oracle to plan billion-dollar facilities within the kingdom.

Humain has announced plans to combine the new hardware with expansive Arabic language models, aiming to create a regional hub for generative AI research and its application.

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