Adobe’s (ADBE) shares fell on Wednesday, even as the creative software giant revealed its new partnership with Humain, the artificial intelligence firm backed by Saudi Arabia’s sovereign wealth fund.
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The goal of the partnership with Humain is to build generative AI models, agents, applications, and infrastructure tailored for Saudi Arabia and the broader Middle East. To power these efforts, Qualcomm (QCOM) is expected to supply the data center capacity based on the American chip designer’s upcoming energy-efficient AI200 and AI250 AI chips.
Adobe Is Humain’s First Global Data Center Customer
The partnership was unwrapped on Wednesday at the U.S.-Saudi Investment Forum. As part of the arrangement, Adobe also signed up as Humain’s first global data center customer, with plans to deploy the latter’s cloud capacity for its Firefly Foundry.
The Foundry is Adobe’s platform for large organizations to create their own custom-made AI models. Specifically, the collaboration will see Humain’s ALLAM — its data center and Arabic-first large language model — integrated with Adobe’s foundry.
Adobe and Humain Target AI Model for the Middle East
Humain noted that it hopes to provide access to generative AI models to over 400 million Arabic speakers globally. The features are expected to be provided to users in the region via Adobe’s platforms.
These include document manager Adobe Acrobat, enterprise platform for scaling generative artificial intelligence Adobe GenStudio, and editing software platforms Adobe Photoshop and Premiere, among others.
The models are expected to deliver “culturally relevant and historically informed” use cases such as visuals for advertising, film and entertainment, learning for education, designing for e-games, and social media content creation.
“We are building a new creative intelligence that understands our language, our values, our heritage, and our future with Adobe,” noted Tareq Amin, Humain’s chief executive.
The arrangement comes as Humain continues to expand its global AI investments, partnering with U.S. chip makers such as Nvidia (NVDA), Advanced Micro Devices (AMD), and AI networking infrastructure provider Cisco (CSCO).
Is ADBE a Good Stock to Buy Right Now?
On Wall Street, analysts currently have a Moderate Buy rating on Adobe’s shares. This is based on 18 Buys, seven Holds, and one Sell issued by 26 analysts over the past three months.
At $463.83, the average ADBE price target indicates about 45% upside potential.
