AI Startup Dodges US Backlash With Saudi Deal
AI Startup Dodges US Backlash With Saudi Deal
The News
Together AI, an American startup that serves open-source artificial intelligence models, announced a deal with Humain — Saudi Arabia's state-backed AI company — to build a 250 megawatt data center in the kingdom.
The New York Times reported the arrangement lets Together AI buy compute in Saudi Arabia and bypass the growing backlash over data centers in the United States.
The agreement was announced Monday, August 31, 2026.
Timeline
The New York Times' DealBook reports Together AI has struck a deal to use compute from Humain in Saudi Arabia.
The Washington Examiner reports the agreement covers a 250 megawatt data center in the kingdom, and frames the move as an American AI startup setting up camp abroad to avoid the U.S. data center backlash.
Reuters reports separately that Saudi AI firms Humain and DataVolt are partnering on a data center on the kingdom's Red Sea coast.
Reactions
Coverage split on framing rather than facts. The Washington Examiner cast the deal as a U.S. company fleeing domestic opposition to data centers. The New York Times described the same effect in plainer terms — Saudi compute lets the startup sidestep the fight at home.
Neither Together AI nor Humain offered public comment beyond the announcement in the reporting available.
What's Next
Watch for construction and capacity details on the 250 megawatt build, and for whether the Humain–DataVolt Red Sea project reported by Reuters connects to it.
The bigger question for Washington: how many more American AI firms rent computing power from a Gulf state rather than fight zoning boards, power authorities and unions at home.
More
Humain is Saudi Arabia's state-backed artificial intelligence company. Together AI's business is serving open-source AI models, which run on large volumes of purchased compute — the exact resource that domestic data center fights are making harder to add in the U.S.
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