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American AI chip startup Groq will partner with Aramco Digital to establish what it claims would be the world’s largest AI inference data center in Saudi Arabia.
While no specific funding amount was mentioned for the deal, Bloomberg reports that the facility is expected to cost Aramco around nine figures.
The data center, set to launch by the end of 2024, will initially feature 19,000 language processing units, with the potential to expand to 200,000 units in the future.
We are proud to announce our partnership with @Aramco Digital to establish the world's largest inference data center using Groq® LPU™ AI inference technology. Read the full press release here. https://t.co/bfLnJvXjcQ
— Groq Inc (@GroqInc) September 12, 2024
Groq noted that the data center will utilize its LPU AI inference technology and advanced processors specifically developed to handle large-scale inference tasks.
Tareq Amin, CEO of Aramco Digital, the digital and technology subsidiary of Saudi Aramco, stated that the new data center is a crucial part of Saudi Arabia’s broader efforts to modernize its economy and reduce its reliance on oil revenue, in line with the country’s Vision 2030 plan.
Groq CEO Jonathan Ross highlighted the strategic benefits of Saudi Arabia, stating that the center’s location offers access to four billion people with fast data transmission speeds. Groq is also planning to establish a regional office in Riyadh to strengthen its presence in the region.
Despite recent U.S. government restrictions on AI chip exports, which have impacted the availability of advanced chips, Groq is confident it will not face limitations.
Founded in 2016 by a group of former Google engineers, Groq has rapidly made a name for itself in the AI space with its Tensor Processing Unit (TPU). The company was recently valued at $2.8 billion after raising $640 million in a Series D funding round led by Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners.
Groq’s chips are designed for high-speed AI inference, and through this deal, it has positioned itself as a challenger to industry leaders like Nvidia, and AMD.
