Artificial intelligence startup Groq Inc. has teamed up with oil giant Aramco to establish a massive data center in Saudi Arabia. This center aims to serve as a hub for AI operations across the Middle East, Africa, and India.
Based in California, Groq plans to manage what is projected to be the world’s largest AI inferencing center, initially featuring 19,000 language processing units. Aramco will finance the project with an investment estimated in the hundreds of millions, according to Groq’s CEO, Jonathan Ross. The center is expected to be operational by year-end, with potential expansion to 200,000 units.
This venture is in collaboration with Aramco Digital, a new division of the oil producer aimed at leveraging AI to enhance its energy operations and support other businesses in adopting AI technologies.
Ross noted that Aramco’s substantial capital investment is part of a strategy to diversify the economy beyond oil. The choice of Saudi Arabia for the data center leverages the country’s low energy costs, ample land, and proximity to a vast population within a 100-millisecond data transmission range.
Saudi Arabia is positioning itself as a technology hub to modernize its economy and create new revenue streams. However, US restrictions on exporting advanced AI chips have posed challenges, limiting access to the latest Nvidia Corp. technology.
Groq anticipates no US government restrictions on its expansion plans in Saudi Arabia, including setting up a regional headquarters in Riyadh. “We’ve been transparent with Commerce about our plans here,” Ross stated, adding that Groq preemptively chose not to engage with Chinese companies even before recent regulatory crackdowns.
Looking ahead, Ross mentioned potential future projects with Aramco, highlighting the strong partnership and mutual interest in regional deployments. “We expect to collaborate extensively with Aramco Digital and look forward to continued partnership,” he said.