Elon Musk says xAI plans to develop a 500 megawatt data center in Saudi Arabia with state-backed AI startup Humain; the data center will rely on Nvidia chips (Mark Bergen/Bloomberg)

Nvidia exceeded Wall Street expectations with its third-quarter earnings, showcasing strong demand for its AI chips. The company's shares rose in after-market trading, reflecting investor confidence amid concerns about the AI market's valuation. CEO Jensen Huang highlighted record sales and a rapidly expanding AI ecosystem, indicating a positive outlook for the company's future.

Nvidia reported a 65% increase in profit, reaching $31.9 billion, surpassing Wall Street expectations. This surge is attributed to strong demand for its products, particularly in the artificial intelligence sector. The company's performance reflects its significant role in the tech industry amidst ongoing market fluctuations.

Nvidia reported a 62% year-over-year increase in revenue for Q3, reaching $57.01 billion, surpassing the estimated $54.92 billion. Data Center revenue rose by 66% to $51.2 billion, while net income increased by 65% to $31.9 billion. This strong performance is attributed to heightened demand for Nvidia's products, particularly in the artificial intelligence sector.

Yann LeCun, a prominent artificial intelligence researcher at Meta Platforms Inc., has announced his departure from the company at the end of 2025. He plans to establish a new startup focused on advancing machine intelligence research, with Meta remaining as a partner in this endeavor.

Bloomberg's Caroline Hyde and Ed Ludlow discuss investor expectations ahead of Nvidia's earnings report. Nvidia CEO Jensen Huang and Tesla CEO Elon Musk are set to speak at the US-Saudi Investment Forum. Additionally, Brookfield Asset Management aims to secure $10 billion in commitments for a global AI infrastructure program in partnership with Nvidia and Kuwait's wealth fund.

Saudi Arabia has entered into a partnership with Elon Musk's artificial intelligence company, xAI, to establish a data center in the kingdom. This collaboration aims to enhance Saudi Arabia's technological infrastructure and support its ambitions in the AI sector. The deal signifies a growing interest in AI technologies within the region, aligning with the country's broader economic diversification goals.

Nvidia's shares have surged following a sales outlook that significantly exceeded analysts' expectations. The company's strong performance is attributed to robust demand for its products, particularly in the AI sector, which has been a major driver of growth. This positive outlook has bolstered investor confidence in Nvidia's future prospects.

AI video startup Luma AI has successfully raised $900 million in a Series C funding round led by Humain, bringing its valuation to approximately $4 billion. The company, founded by Indian-American CEO Amit Jain, is also partnering with Humain to develop a 2GW AI cluster in Saudi Arabia, marking a significant investment in the region's AI infrastructure.