Musk’s xAI and Nvidia to Develop Data Center in Saudi Arabia

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.

Elon Musk's xAI plans to establish a 500 megawatt data center in Saudi Arabia in collaboration with the state-backed AI venture Humain, utilizing chips from Nvidia Corp. This initiative is part of a broader strategy to enhance AI capabilities in the region.

Vedanta Ltd. is set to increase its investments in Saudi Arabia as the Indian conglomerate aims to capitalize on the kingdom's aspirations to establish itself as a hub for metals and mining amid its extensive economic transformation.

Brookfield is in the process of raising $10 billion to establish a new AI infrastructure fund. The initiative has attracted significant interest from major investors, including Nvidia and the Kuwait Investment Authority. This move highlights the growing demand for investment in artificial intelligence technologies and infrastructure, reflecting a broader trend in the technology sector.

Elon Musk's AI startup, xAI, is reportedly in advanced discussions to raise $15 billion, which would significantly increase its valuation. The company is currently investing heavily in enhancing its Grok chatbot, similar to other AI startups that are also facing high cash burn rates as they develop their technologies.

The US is set to approve the sale of advanced artificial intelligence chips to the Saudi Arabian AI firm Humain, according to sources familiar with the matter. This decision comes as Saudi Crown Prince Mohammed bin Salman meets with US President Donald Trump, marking a significant step for the state-backed venture. The approval is seen as a positive development for both the US technology sector and Saudi Arabia's ambitions in AI.

The RAM pricing crisis is posing a significant threat to the graphics card market, with rumors suggesting that some budget GPUs from AMD and Nvidia may be scrapped. As Black Friday approaches, consumers are urged to consider purchasing new graphics cards, as this may be the last opportunity before potential chaos in the GPU market. The situation highlights the ongoing challenges within the technology sector, particularly affecting budget-conscious gamers and consumers looking for affordable graphics solutions.

The stock market continues to decline, with major indices in Europe and Asia falling over 1%. The UK's FTSE 100 dropped by 0.9%, while Germany's Dax fell by 1.3%. The S&P 500 index is experiencing its worst three-day run since April, down 2.61%. Concerns surrounding the artificial intelligence sector, particularly regarding Nvidia and OpenAI, are contributing to the market's instability. Investors are cautious ahead of Nvidia's earnings report and the US payrolls report later this week.