Artificial intelligence startup Groq Inc. is partnering with oil giant Aramco to build a massive data center in Saudi Arabia, aiming to make it a key AI hub for the Middle East, Africa, and India. The California-based company will operate what it claims to be the world’s largest AI inferencing center, starting with 19,000 language processing units. Aramco is funding the project, expected to cost in the “nine figures,” with plans for future expansion that could bring the total to 200,000 units. The center is set to be operational by the end of this year.

The partnership with Aramco Digital, a new arm of the oil producer focused on AI, is part of Saudi Arabia's push to diversify its economy beyond oil. Groq’s CEO, Jonathan Ross, emphasized that Saudi Arabia’s low energy costs and strategic location make it an ideal base for AI technologies. While the country aims to become a technology hub, efforts have been hampered by US export restrictions on Nvidia’s latest AI chips. Groq, however, does not expect any such issues as it continues to strengthen its presence in the region.