As the deputy chief investment officer of Sanabil, Saudi Arabia’s sovereign wealth fund’s venture branch, Bader Al Mana, evidenced signs of travel fatigue while discussing his entity’s proactive approach in scouting promising artificial intelligence (AI) startups. This conversation took place at The Montgomery Summit in Los Angeles, an exclusive event for startup investors and entrepreneurs. Sanabil is carving out a presence in the market by acquiring direct interests in innovative companies and creating a dedicated strategy for AI investments.
In a bid to make a more significant impact, the Saudi government is contemplating the creation of a colossal investment fund in partnership with Andreessen Horowitz, aimed at AI ventures. A knowledgeable source suggests that this fund could be comparable to the kingdom’s substantial $45 billion investment in SoftBank’s Vision Fund. Given the sluggish stock market and soaring interest rates leaving many investors with limited liquidity, such a fund could significantly alter the AI investment landscape.
This initiative is a stark departure from the kingdom’s previous investment strategy, which primarily involved deploying vast oil revenues through external venture capitalists. In the current climate of heightened investment activity in AI, Saudi Arabia is charting a course to cultivate domestically developed technology. Encouraging startups with Saudi backing to establish operations within the nation, either through physical offices or corporate partnerships, paves the way for the kingdom’s deeper integration into the tech ecosystem.