Groq and Aramco Team Up for Massive AI Data Center in Saudi Arabia
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American AI chip startup Groq is joining forces with Aramco Digital to create what they claim will be the world’s largest AI data center in Saudi Arabia. While no exact figures were given, reports suggest the project will cost Aramco close to nine figures.
Scheduled to launch by the end of 2024, the data center will initially operate with 19,000 language processing units (LPUs) but has the capacity to expand to 200,000 in the future. Groq will provide its advanced AI inference technology and specialized processors to manage large-scale inference tasks efficiently.
Tareq Amin, CEO of Aramco Digital, emphasized that this new data center is part of Saudi Arabia’s larger goal to modernize its economy and reduce its dependence on oil, in line with the Vision 2030 initiative. Groq's CEO, Jonathan Ross, highlighted the strategic advantage of Saudi Arabia’s location, which offers access to fast data transmission speeds for a large population of over four billion people. Groq is also planning to establish a regional office in Riyadh to solidify its presence in the Middle East.
Despite recent U.S. restrictions on AI chip exports, Groq remains confident that its operations won't be affected. Founded in 2016 by former Google engineers, Groq has quickly made a name for itself in AI technology with its Tensor Processing Units (TPUs). The company was valued at $2.8 billion after raising $640 million in its Series D funding round, backed by investors like Cisco, Samsung Catalyst Fund, and BlackRock Private Equity Partners.
With this partnership, Groq is positioning itself as a serious competitor to AI giants like Nvidia and AMD, aiming to lead the industry in high-speed AI processing.
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