Saudi Arabia plans to create a $40 billion fund for investments in artificial intelligence, making it the largest AI investor globally. The fund aims to diversify the nation’s economy and boost its influence in geopolitics. The Public Investment Fund of Saudi Arabia is in talks with Andreessen Horowitz and other financiers to establish this fund, potentially changing the landscape of AI investments.
The fund, backed by Wall Street banks, signals the growing interest in AI technology, with hefty funding required for such projects. Saudi Arabia aims to support various tech startups focusing on AI, including chip makers and data centers. The country may also consider launching its AI companies to further advance its technological capabilities.
The investment push is expected to kick off in the second half of 2024, positioning Saudi Arabia and Andreessen Horowitz as key players in the AI industry. Discussions include the possibility of setting up an office in Riyadh, showcasing the nation’s commitment to AI innovation.
International venture capitalists are likely to participate in Saudi’s tech fund, given the kingdom’s financial strength and global ambitions. Despite past controversies, Saudi Arabia is regaining favor among investors, with notable partnerships and investments in various sectors, including technology.
