Saudi Arabia has made a landmark investment into the future of media production, with the Public Investment Fund’s (PIF) artificial intelligence company, Humain, leading a $900 million Series C funding round for Silicon Valley-based Luma AI. The move signals a strategic ambition to transform how films and video content are created on a global scale.
The significant funding round also saw participation from AMD Ventures and existing investors Andreessen Horowitz, Amplify Partners, and Matrix Partners. The partnership aims to build the next generation of Hollywood not in physical studios, but within advanced data centers powered by generative AI.
Project Halo: A 2-Gigawatt AI Data Center
A cornerstone of the partnership is the development of a 2-gigawatt AI data center in Saudi Arabia, codenamed Project Halo. This facility will be instrumental in powering the immense computational needs of AI-driven video production.
“We are bringing global compute through Humain in Saudi Arabia,” said Amit Jain, CEO of Luma AI. He noted that the data center will support not only regional workloads but also “a big portion” of Luma’s global compute requirements.
According to Jain, Saudi Arabia’s appeal is multi-faceted, citing its vast land availability, abundant low-cost solar power, and the strong strategic partnership between the US and the Kingdom, which facilitates access to advanced chips.
The Economic Case for AI Production
The shift towards AI-generated content is being driven by powerful economic incentives. Industry experts anticipate that film and television will follow the advertising sector in adopting AI, primarily due to massive potential cost savings.
Jain illustrated the financial disparity, stating that a production costing $100,000 with traditional methods could be accomplished for just $1,000 using generative AI. “The economic forces are so strong that it is inarguable,” he added.
Preserving Arabic Content with a World Model
Beyond the commercial and technological ambitions, the collaboration has a crucial cultural objective. Luma AI is working directly with Humain to build a dedicated Arabic-language world model, which functions similarly to the large language models behind tools like ChatGPT but is focused on the physical world rather than text.
This initiative is designed to counteract the current data bias in AI, where models are trained primarily on content from the largest internet user bases in the US, China, and India.
Jain explained the risk of inaction, stating that AI models trained on existing footage “will generate people that look like they’re in Wisconsin, not in Riyadh.” This project aims to ensure that Arabic content and cultural representation are not “erased from the internet.”
Saudi’s Strategic Capital Play
This investment is a key part of Saudi Arabia’s broader strategy to become a global hub for technology, media, and entertainment. By leveraging its significant capital, the Kingdom is positioning itself as a primary financier and owner of the industry-changing organizations that will define content creation in the 21st century.
This deal follows other blockbuster announcements from PIF, including the backing of a new $1 billion production company, Arena SNK Studios, and a $100 million film fund to support both local and international content.
“We are working with many entities within the kingdom to build what is considered to be the Hollywood of Saudi Arabia,” Jain concluded.
About Humain
Humain is the new artificial intelligence (AI) company launched by Saudi Arabia’s Public Investment Fund (PIF). The company is focused on driving innovation in AI and investing in transformative technologies and partnerships to position the Kingdom as a global leader in the AI-driven economy.
Source: AGBI
