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Luma AI Secures $900M to Build AI Supercluster in Saudi Arabia

Frontier AI company Luma AI has raised $900 million in Series C funding led by HUMAIN to construct a 2-gigawatt AI supercluster and accelerate development of multimodal World Models.

Frontier AI company Luma AI has raised $900 million in Series C funding led by HUMAIN to construct a 2-gigawatt AI supercluster and accelerate development of multimodal World Models.

Frontier AI company Luma AI has raised $900 million in Series C funding led by HUMAIN to construct a 2-gigawatt AI supercluster and accelerate development of multimodal World Models.

NewDecoded

Published Nov 21, 2025

Nov 21, 2025

3 min read

Image from HUMAIN

Luma AI announced a $900 million Series C funding round led by HUMAIN, a Saudi Public Investment Fund company, with participation from AMD, Amazon, and existing investors including Andreessen Horowitz. The capital will fund the training and deployment of next-generation multimodal AI systems capable of simulating physical reality. As part of the partnership, HUMAIN will construct Project Halo, one of the world's largest AI compute clusters at 2 gigawatts, with deployment beginning in Q1 2026.

The announcement, made at the U.S.-Saudi Investment Forum in Washington, D.C., positions Luma AI to train large-scale World Models that process video, audio, images, and text simultaneously. Unlike current Large Language Models focused primarily on text, World Models learn from what CEO Amit Jain calls "a quadrillion tokens of information" spanning humanity's digital footprint. This computational requirement is 1,000 to 10,000 times greater than today's frontier LLMs, necessitating the massive infrastructure HUMAIN is building.

Luma AI has already demonstrated commercial traction with Ray3, its flagship generative video model deployed across studios, ad agencies, and embedded within Adobe's product suite. The company plans to extend beyond entertainment and advertising into simulation, design, and robotics applications. With this funding, Luma becomes a customer of HUMAIN's Saudi Arabian supercluster, gaining dedicated access to frontier-scale computing resources.

The partnership includes HUMAIN Create, an initiative to develop AI models trained on Arabic and regional data for MENA markets. These culturally aligned models aim to help enterprises and governments adopt AI that reflects local identity and values. HUMAIN CEO Tareq Amin emphasized the company's philosophy of building "the full value chain" that makes frontier AI possible, combining capital, compute infrastructure, and capability development.


Decoded Take

Decoded Take

Decoded Take

This deal signals a fundamental shift in how frontier AI development gets financed and built. While competitors like OpenAI and Anthropic rely on Microsoft and Amazon for computing power, Luma AI is securing dedicated infrastructure through a sovereign wealth fund willing to build entire power-grid-scale data centers. The 2-gigawatt figure (roughly equivalent to a small nuclear power plant) underscores the energy intensity of training multimodal models.

More importantly, the partnership structure reveals growing recognition that the next wave of AI requires more than algorithms; it demands vertical integration of capital, chips, power, and real estate. Saudi Arabia's aggressive push into AI infrastructure through PIF-backed HUMAIN also reflects geopolitical competition to own critical AI capabilities, moving beyond mere investment into operational control of the full stack.

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