The New York Times’ Maureen Farrell and Rob Copeland report that Saudi Arabia is working with Wall Street banks to establish a $40 billion AI-focused investment fund.
According to their reporting, over recent weeks Saudi Arabia’s Public Investment Fund representatives have discussed partnerships with top venture capitalists and financiers including Andreessen Horowitz, one of Silicon Valley’s top venture capital firms.
While plans could change, the intent is to create a fund of about $40 billion which would make Saudi Arabia the world’s largest investor in artificial intelligence.
“Saudi representatives have mentioned to potential partners that the country is looking to back an array of tech start-ups tied to artificial intelligence, including chip makers and the expensive, expansive data centers that are increasingly necessary to power the next generation of computing, according to four people with knowledge of those efforts, who were not authorized to speak publicly. It has even considered starting its own A.I. companies.”
Speaking at a Saudi-sponsored Future Investment Initiative event in Miami last month, PIF Governor, Yasir Al-Rumayyan commented that, “”We are fairly well positioned to be an AI hub outside of the U.S. AI will consume a lot of energy and we are the global leader when it comes to fossil fuel energy and when it comes to renewable energy.” He added that Saudi Arabia has the political will to make the projects happen.
Writing for Quartz, Morgan Haefner adds that, “Globally, corporate investment in AI has been exploding, but such a gigantic investment from Saudi Arabia would make it a key global player in the space. It would also fulfill the kingdom’s broader goals of differentiating its domestic business models (currently heavily dominated by oil) while growing its geopolitical influence.”
