Report: Saudi Arabia is brewing a $100 billion AI project that will compete with the technology hub in the UAE

Wallstreetcn
2024.11.06 21:27
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Saudi Arabia aims to become a leading force in global artificial intelligence development, planning to invest $100 billion to establish an AI project called "Project Transcendence." The project will involve investments in AI centers alongside tech giants like Alphabet-C. In the future, Saudi Arabia may reference its collaboration with Alphabet-C to launch more AI projects

On November 6th, Eastern Time, Bloomberg cited sources familiar with the matter stating that Saudi Arabia plans to invest up to $100 billion to launch an AI project named "Project Transcendence," aimed at establishing a technology hub that can compete with neighboring UAE.

"Project Transcendence," supported by the Saudi government, will focus investments on data centers, startups, and other infrastructures that can enhance AI development. The project also aims to attract global talent to work in Saudi Arabia, develop the local ecosystem, and encourage more tech companies to invest in the country.

This project builds on the significant efforts already made by Saudi Arabia, which seeks to narrow the gap in AI expertise with the United States and China and become a major player in the AI field. They plan to operate this project similarly to the Alat fund, which is dedicated to investing in sustainable manufacturing, funded by the Saudi Public Investment Fund (PIF) and led by Saudi Crown Prince Mohammed bin Salman, in collaboration with large companies worldwide.

Saudi Arabia's goal is to collaborate with large, established tech companies, providing infrastructure and financial support. Sources revealed that the Saudi PIF is currently working with Google to establish an artificial intelligence center, with plans to invest between $5 billion and $10 billion and develop AI models in Arabic. Saudi officials have stated that they hope to create a national-level AI entity at least as large as Abu Dhabi's G42 technology group.

AI is part of Saudi Arabia's "Vision 2030" strategy, which aims to find new sources of revenue as the country seeks to reduce its dependence on fossil fuels. Saudi Arabia hopes to adopt AI technology domestically and begin exporting this technology by 2030, aiming to become one of the top 15 countries in the global AI field. To this end, Saudi Arabia has established several important research centers and departments dedicated to AI and has developed large language models similar to OpenAI's ChatGPT.

Saudi Arabia aims to become a leader in the AI field and has already made significant progress in this area, but some of their large projects may be affected by funding issues. For example, the trillion-dollar Neom development project is facing funding cuts.

Additionally, sources revealed that the Saudi Public Investment Fund (PIF) is also in early negotiations with venture capital giant Andreessen Horowitz to potentially establish a fund that could reach $40 billion, specifically for investments in the AI sector

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