Saudi Public Investment Fund and Google Cloud announced a strategic partnership to create a new global artificial intelligence (AI) hub based in Dammam.
Signed at the Future Investment Initiative 8th Edition (FII8), the partnership is intended to develop the Saudi workforce through AI programs for millions of students and professionals and support the kingdom’s objective of growing the information and communication technology (ICT) sector by 50%.
The hub will be located near Dammam in the Eastern Province and will feature the latest Google Cloud infrastructure, including tensor processing units (TPUs) and graphics processing units (GPUs).
The partnership will feature joint research on Arabic language models as well as Saudi-specific AI applications. Ruth Porat, President and Chief Investment Officer of Alphabet and Google, said:
“This strategic partnership will accelerate adoption of AI in the local language and across industries — including healthcare, retail, financial services and more — for enterprises and startups in Saudi Arabia, across the Middle East, Africa and around the world. As part of Saudi Arabia’s rich technology ecosystem, we aim to create highly-skilled jobs for Saudis and opportunities for global businesses to fuel growth through cloud adoption.”
While the AI hub is projected to contribute as much as $71 billion to Saudi Arabia’s economy, Nadine Kahil writing for Wired notes that, “At the core of this initiative is a drive to cultivate homegrown talent. Google’s AI hub will provide training, research opportunities, and collaboration platforms for local developers, researchers, and startups, potentially training “millions” of people. This approach is designed to build a strong ecosystem that fosters innovation and encourages entrepreneurship, ensuring that the economic benefits are felt at all levels of society.”
“The importance of this partnership extends beyond commercial interests. Given the current geopolitical landscape, the collaboration is likely to be closely coordinated with agencies in the United States, such as the National Security Council and the Department of Commerce. This alignment with the US government reflects the national security aspect of AI systems and the rapidly changing nature of export controls, which are prompting US tech giants to exercise caution when conducting deals in foreign countries to avoid potential regulatory hurdles.”
Adding that:
“The Google-PIF partnership symbolizes the evolution of US-Saudi relations, reflecting the beginning of a shift from traditional energy ties to a dynamic partnership centered on technology and innovation. This partnership also represents a new Gulf model of collaboration — supported by the US government — with global tech leaders. In a Middle East increasingly defined by digital ambitions and rapid AI infrastructure expansion, the Google-PIF partnership and similar deals, such as Microsoft’s agreement with G42, signal a profound shift, underscoring the region’s readiness to emerge as a central force in the global tech ecosystem.”
