Aramco buys 49% of Humain

Speaking of AI and Energy: Aramco has completed its purchase of a 49% stake in Saudi AI company Humain, investing USD 2.6 bn in a company whose services it plans to use across its own operations, according to a press release. The Public Investment Fund (PIF) will retain a controlling 51% of Humain.

The new money from Aramco will support a sizable infrastructure push: Humain is targeting 3 GW of AI data center capacity by 2030.

Two ways to read it: The agreement could signal that Saudi Arabia is lining up its state-controlled energy, finance, and technology institutions so its state AI champion can play to existing strengths, Jesse Marks LinkedIn, CEO of Rihla Research & Advisory, tells us.

The less charitable reading is that Humain may be struggling to attract private-sector investors. This arrangement allows the country to move financial risk between state-controlled institutions without having to prove to outside investors that Humain is a good bet. Having Aramco as a customer and co-funder could also give Humain a steadier revenue base while the war with Iran lasts, Marks says.