Saudi Arabia pours millions into start-up to build 'AI Hollywood'
What's the story
Luma AI, an artificial intelligence (AI)-driven video production start-up, raised a total of $900 million in its Series C funding round, which was led by Humain, a subsidiary of the Public Investment Fund (PIF) of Saudi Arabia. Other notable contributors to this funding round included AMD Ventures and existing investors such as Andreessen Horowitz, Amplify Partners, and Matrix Partners.
Tech expansion
Project Halo: A massive AI data center in Saudi Arabia
Along with the funding, Humain and Luma AI are also working on Project Halo, a massive 2-gigawatt AI data center in Saudi Arabia. Amit Jain, the CEO of Luma AI, said this facility would not only handle regional workloads but also cater to "a big portion" of Luma's global compute needs. The project is part of a larger vision to build an "AI Hollywood" in Saudi Arabia.
Strategic edge
Saudi Arabia's strategic advantages for AI production
Jain highlighted Saudi Arabia's vast land availability, cheap solar power, and strong US-Saudi partnership as key factors in the country's appeal for AI production. However, he also noted that talent remains a major bottleneck in the industry due to a limited number of people who know how to use this technology. The funding and infrastructure will help Luma AI work on large-scale "world models" focused on the physical world rather than text.
Industry impact
AI's potential to revolutionize film and TV production
The potential of AI to revolutionize the film and TV industry is huge, with Jain estimating that a traditional $100,000 production could be done for just $1,000 if generated by AI. "The economic forces are so strong that it is inarguable," he said. Luma AI is also working with Humain on an Arabic-language world model to ensure Arabic content isn't "erased from the internet."
Global presence
Saudi Arabia's growing influence in the global content industry
Despite Hollywood's struggles, Saudi Arabia is emerging as a major player in the global content industry. Cameron Crawford from Cedar White Bradley said, "In five years, Saudi will be seen as a global owner and financier." He added that it will become the destination for investments into major organizations shaping the content industry for the rest of this century.