The Kingdom of Saudi Arabia is poised to become a major player in the global race for artificial intelligence (AI) dominance. The New York Times reports that the Saudi Arabian government is seriously considering the creation of a staggering $40 billion investment fund dedicated to AI technologies.
Thank you for reading this post, don't forget to subscribe!This ambitious initiative, spearheaded by the country’s Public Investment Fund (PIF), could launch as early as the second half of 2024. Fueling the speculation is a potential partnership with Silicon Valley venture capital giant Andreessen Horowitz (a16z). Discussions regarding this collaboration have reportedly been ongoing since April 2023.
According to sources familiar with the matter, a16z could not only oversee AI investments but also establish a physical presence in the Saudi capital of Riyadh. This potential partnership is further bolstered by the personal connection between a16z co-founder Ben Horowitz and PIF governor Yasir Al-Rumayyan, who are reportedly friends.
If realized, the $40 billion fund would dwarf current investments in the AI space. For instance, Microsoft’s total investment in OpenAI, creator of the popular ChatGPT language model, stands at $13 billion – less than half of what Saudi Arabia is contemplating.
The Saudi AI fund reportedly plans to tap into the nation’s vast wealth, drawing from its $900 billion sovereign wealth fund. Investment targets include chip manufacturers and large data centers – crucial infrastructure for powering advanced AI technology. The fund might even explore establishing its own AI companies from the ground up.
This focus on AI aligns with a broader Saudi Arabian vision. In a 2023 interview, Ben Horowitz lauded the Kingdom as a “startup country,” suggesting it is actively seeking to become a leader in innovation. This ambition comes amidst concerns that the United States is losing ground in the global startup scene.
The move by Saudi Arabia also coincides with efforts by neighboring countries to advance AI capabilities. OpenAI’s CEO recently sought a staggering $7 trillion investment from the United Arab Emirates, specifically for developing more advanced semiconductor chips, a vital component in AI development.
The creation of a $40 billion AI fund by Saudi Arabia would be a game-changer, and its impact on the global AI landscape will be closely watched.
