The Kingdom seems poised to invest substantially in the artificial intelligence (AI) development sector.
Bloomberg noted that the project will reportedly be supported by up to USD 100 billion.
Ambitious plans
Sources reported that the “state-backed entity” will invest in data centers, startups, and other infrastructure to develop AI technologies.
They added that the initiative, called the “Project Transcendence,” will also target new talent to Saudi Arabia.
The project is also aimed at enhancing the local tech environment and encouraging tech companies to seek domestic expansion opportunities.
So what
The company’s foundation is in line with national efforts to strengthen KSA’s position as a global AI development hub.
The initiative will resemble the structure of the “Alat” fund, according to a source familiar with the matter.
It is worth noting that the current fund, chaired by Crown Prince Mohammed bin Salman, focuses on sustainable manufacturing.
The fund is backed by USD 100 billion from the Public Investment Fund (PIF), to partner in investments with major global companies.
Some Context
The AI center being developed by the Saudi sovereign wealth fund and Google’s parent company, Alphabet, is likely to serve as a “launchpad” for a broader initiative.
The two entities are planning to invest between USD 5-10 billion within the scope of the partnership, which will focus on creating AI models in Arabic.
A source close to the matter explained that the “Project Transcendence” falls under the umbrella of a strategy targeting collaboration with big tech firms. One under which Saudi Arabia plans to provide infrastructure and capital for development.
Investments could range from USD 50-100 billion.
The project could ultimately garner support from government agencies aiming to fund AI infrastructure and startups associated with the sector.
The goal is to narrow the gap with the U.S. and China in AI expertise, according to one source.
The government hopes that its AI project will become a “national champion” on par with the “G42” holding company in Abu Dhabi, which includes several tech firms.
This is part of the Kingdom’s broader efforts to develop a tech hub that “boosts competition” with the neighboring UAE.
Now what
Artificial intelligence is a key component of Saudi Arabia’s Vision 2030 strategy, which aims to create new sources of income to diversify the economy of the world’s largest oil exporter away from fossil fuels.
Saudi Arabia aims to be among the top 15 countries in the AI development field by the end of the decade, initially adopting the technology domestically, and eventually beginning to export it by 2030.
The Kingdom has already launched major research centers and ministries focused on AI, and has developed large models similar to OpenAI’s “ChatGPT.”
