Saudi Arabia Working On $40 Billion AI Fund: Report (Photo by Igor Omilaev on Unsplash)
Countries and companies around the world are investing heavily in artificial intelligence (AI) technology. Meanwhile, Saudi Arabia is planning to become the largest player in AI technology. The New York Times reported that the government of Saudi Arabia is planning to create a fund of about $40 billion to invest in AI.
The New York Times, citing three people, reported that representatives of Saudi Arabia’s Public Investment Fund (PIF) have discussed a potential partnership with Andreessen Horowitz and other financiers in recent weeks. Notably, Andreessen Horowitz is one of Silicon Valley’s top venture capital firms. At the same time, the sources also cautioned that the plans could still change.
As per the report, this tech fund is expected to make the Middle Eastern country the world’s largest investor in AI technology. Saudi Arabia”s latest move indicates that the country is planning to establish itself as a more significant player in geopolitics. It is worth mentioning that the country is also focusing on diversifying its economy beyond oil.
Andreessen Horowitz is already an active investor in AI. Officials from Saudi Arabia have reportedly discussed the role Andreessen Horowitz could play in this significant investment. Investors around the globe are in a race to find or build the next Nvidia or OpenAI. Meanwhile, The Wall Street Journal recently reported that Sam Altman, the CEO of Microsoft-backed OpenAI, was seeking to raise trillions of dollars from investors, including the United Arab Emirates government.
According to The New York Times, Saudi Arabia’s new investment push is expected to commence in the second half of this year. PIF governor Yasir Al-Rumayyan and Andreessen Horowitz have also reportedly discussed the possibility of the Silicon Valley firm setting up an office in Riyadh. The country is also looking to support various tech start-ups associated with AI, including chip makers and large-scale data centers.
