Saudi Arabia to Invest $40 Billion in Artificial Intelligence Fund
The government of Saudi Arabia is set to create a fund of about $40 billion to invest in artificial intelligence, making it the world’s largest investor in AI. This move is part of the country’s efforts to diversify its economy and establish itself as a key player in the global tech industry.
Representatives of Saudi Arabia’s Public Investment Fund have been in talks with Silicon Valley’s venture capital firm Andreessen Horowitz, among others, to discuss potential partnerships. The fund aims to support a wide range of tech start-ups related to AI, including chip makers and data centers.
The cost of funding AI projects is high, with companies like OpenAI seeking significant investments to boost manufacturing of AI technology. Saudi Arabia’s ambitious investment plans are expected to take off in the second half of 2024, positioning the country as a major player in the AI race.
The partnership with Andreessen Horowitz could see the firm setting up an office in Riyadh, the capital of Saudi Arabia. Other venture capitalists are also expected to participate in the kingdom’s tech fund, further solidifying Saudi Arabia’s position in the global tech landscape.
Despite past challenges in technology investing, Saudi Arabia’s move to invest in AI has been welcomed by industry players in Silicon Valley and on Wall Street. The country’s growing financial clout and global ambitions make it a key player to watch in the evolving tech industry.
