Saudi Arabia aims to become the world’s largest investor in artificial intelligence. The government in this Middle Eastern nation is moving ahead with plans to establish a fund of up to 40 billion dollars, according to confidential briefings to The New York Times.
In recent weeks, officials from the Public Investment Fund have discussed a potential partnership with Andreessen Horowitz, a leading Silicon Valley venture firm whose cofounder Ben Horowitz is reportedly a close associate of Yasir Al-Rumayyan, the governor who oversees this state investment vehicle.
Allocating 40 billion dollars to AI development would position Saudi Arabia as a dominant player in a fast-moving market. That sizable amount would only be rivaled by Japan’s SoftBank, a major investor in global startup ecosystems. The Saudi plan could accelerate in the second half of 2024, according to those familiar with the talks.
Growing influence
This move, described by The New York Times, is framed as a strategic step to expand the royal family’s global footprint. It would highlight the nation’s corporate ambitions and its push to diversify an oil-based economy while strengthening its stance in global geopolitics.
To date, Saudi Arabia has channeled its ambitions through a sovereign wealth fund that manages assets well above 900 billion dollars. Yet investments in technology firms such as Uber and WeWork have not always yielded strong returns, drawing scrutiny from investors and analysts alike.
Historically, the kingdom’s international standing took a hit in 2018 after the brutal killing of dissident journalist Jamal Khashoggi, an incident that cast a shadow over its reputation. Still, large Wall Street banks have continued to counsel collaboration with the country as it builds a technology-focused fund intended to nurture the next wave of AI leaders and, some say, even rival OpenAI, the entity behind ChatGPT.
Through these efforts, Saudi leadership appears intent on weaving together money, policy, and partnerships to help steer the future of AI from a distinctly regional vantage point. Observers note that the move could alter how Gulf state wealth is perceived on global stages and could influence how international investors assess risk and opportunity in the technology sector.