Bloomberg Tech Musk’s xAI In Talks to Lease Saudi Data Center Capacity
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Jul 16, 2025 Seth Vigerman, an AI editor at Bloomberg, shares insights on the dynamic world of tech and finance. He discusses the rising Nvidia shares spurred by anticipated chip exports to China. Vigerman elaborates on Elon Musk's xAI plans to lease data center capacity in Saudi Arabia, highlighting its ambition to rival major industry players. The talk also touches on the tensions involving President Trump and Federal Reserve Chair Powell, exploring the implications for the tech sector and the broader economy.
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xAI's Saudi Data Center Move
- Elon Musk's xAI is negotiating to lease data center capacity in Saudi Arabia to leverage cheap energy and political support.
- This expansion reflects xAI's ambition to scale infrastructure comparable to leaders like OpenAI and Meta.
xAI's Product and Market Position
- xAI currently gains more attention for controversy than product capabilities.
- The company matches leading AI benchmarks but has yet to prove a strong developer or business ecosystem presence.
xAI's Ambitious AI Scaling
- Tesla founder's AI company aims to scale at an infrastructure level rivaling AI leaders.
- Business viability remains unproven despite technical benchmarking successes.