Saudi’s Humain turns to outside investment as the kingdom reins in fiscal spending

Saudi AI startup Humain is preparing for its initial public offering (IPO), with CEO Tareq Amin revealing that the company aims to list on both Saudi Arabian and New York stock exchanges by 2029. Since its inception last year, Humain has secured partnerships with major tech companies such as xAI, Nvidia, Amazon Web Services, Adobe, and Cisco, primarily funded by the Saudi Public Investment Fund.

The decision to pursue an IPO reflects a shift in Humain's financial strategy, as the company aims to reduce its reliance on state capital and attract permanent, audited capital through a public listing. This move is seen as a way for Humain to access global investors and secure access to advanced chips, given the current export control challenges.

Humain is also planning to raise a $2.5 billion fund to finance the construction of new data centers across Saudi Arabia, which could launch as a larger fund by the end of 2026. The company's long-term goal is to build 1.9GW of AI computing capacity across the kingdom by 2030, with the target of 6GW by 2034. This expansion is driven by various factors, including the Saudi government's cloud-first mandate, the increasing reliance on hyperscalers, and the economic benefits of AI workloads.

Despite the geopolitical challenges, including recent drone strikes on Amazon Web Services data centers in the UAE and Bahrain, Humain remains committed to its AI and data center expansion plans. The Saudi data center market currently has limited capacity per capita compared to other major markets, presenting a significant opportunity for growth.

According to Alvarez & Marsal, Saudi Arabia will need up to $42 billion in project capital to realize its AI and cloud expansion plans by 2030. However, attracting global investors will be crucial for Humain as it navigates the evolving technology landscape in the region.