Saudi Arabia has significantly invested in global tech, and now seeks foreign tech companies to invest within its borders, focusing on AI development, according to recent reports.
Under Crown Prince Mohammed bin Salman, the kingdom has directed its resources towards the tech sector, with ambitions to establish itself as a major AI hub. This shift is highlighted by plans for a $100 billion AI initiative, aiming to attract international tech firms to contribute locally.
Dubbed “Project Transcendence,” the initiative seeks to create a comprehensive AI ecosystem with advanced data centers, innovative startups, and a skilled global workforce. The project also aims to establish a leading national AI entity.
Saudi Arabia’s AI strategy, launched in 2020, is driven by the need to stay competitive amidst regional rivals like the UAE, which has made significant strides in AI with companies like G42 and investments from major firms like Microsoft.
With declining oil revenues, as highlighted by recent IMF reports, Saudi Arabia is under pressure to diversify its economy. Vision 2030, a major strategic initiative, underscores this diversification effort, with the Public Investment Fund (PIF) playing a key role.
The PIF is shifting its focus, reducing overseas investments to 18-20% of its capital, compared to 30% earlier in the decade. Nonetheless, international partnerships remain vital, as seen in discussions with Andreessen Horowitz for a potential $40 billion AI fund.
Recent collaborations, like the partnership between Groq and Saudi Aramco for an AI data center, and a potential AI hub with Google Cloud, illustrate Saudi Arabia’s commitment to becoming a regional AI leader.
As Saudi Arabia advances its AI initiatives, it continues to seek strategic alliances with global tech companies to enhance the Middle East’s AI landscape.