Elon Musk’s artificial-intelligence startup xAI is in early discussions to lease data-center capacity in Saudi Arabia, people familiar with the matter said. The company is negotiating with Riyadh-backed AI firm Humain for several gigawatts of long-term computing power and is also weighing a separate arrangement with another provider building a 200-megawatt facility that could come online sooner. Humain’s proposal would rank among the world’s largest data-center projects but remains years from completion because the infrastructure has yet to break ground. The smaller 200-megawatt site, already under construction, would give xAI an interim source of compute needed to train and run its Grok large-language models. The talks reflect xAI’s strategy of expanding in regions offering abundant, lower-cost energy and political backing. In addition to Saudi Arabia, the company has explored potential sites in the United Arab Emirates and several African nations. The capacity search follows xAI’s recently completed $10 billion equity-and-debt raise, which Musk has said leaves the startup with “plenty of capital” for infrastructure.