Saudi Arabia Announces $14.9B Investment in AI
Saudi Arabia announced a $14.9 billion investment in artificial intelligence Monday while hosting a big technology conference in Riyadh. The ambitious initiative, spearheaded by partnerships with some of the world’s biggest tech companies, represents an attempt by the kingdom to emerge as the leading AI hub in the Middle East.
On Feb. 9, Saudi Minister Abdullah bin Amer Alswaha elaborated on the plan for heavy investments in AI, cloud computing, and emerging technologies. Major partners to drive the expansion include Google Cloud, Lenovo, Alibaba Cloud, Qualcomm, Groq, and Salesforce, among others.
Aramco’s Vision for AI Partnerships
Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation, addressed the need for collaboration in AI:
“Our business is all about scale, and that’s why we need to partner, and no one company can deliver the promise of AI. It has to be a partnership, it has to be many companies that put in place the technologies that we need.”
Aramco, the world’s seventh-biggest company by market capitalization, teams up with technology firms to push for more advanced artificial intelligence development in the kingdom.
Investments in AI and Strategic Partnerships
Saudi-Groq Partnership
Saudi Arabia’s AI ambitions are also underpinned by a $1.5 billion deal with Groq aimed at enhancing cloud computing capabilities using AI-enabled solutions.
Alat-Lenovo Investment
Saudi manufacturing goliath Alat and Lenovo have pledged an investment of US$2 billion toward establishing a modern AI and robotics manufacturing unit in the region. In exchange for this, Lenovo will establish a regional head office in Riyadh.
Other Major AI Commitments
The following are further major commitments made by:
Google, Qualcomm, and Alibaba Cloud: Initiatives to boost localized AI innovation.
Salesforce, Databricks, Tencent Cloud, SambaNova: Investments of $500 million, $300 million, $150 million, and $140 million, respectively, to develop AI capabilities in Saudi Arabia.
AI’s Growing Role in the Middle East
In another related development, stablecoin operator Tether said it will collaborate with UAE-based Reelly Tech, a digital services company, as announced on Feb. 6. The companies will work together to simplify property transactions utilizing Tether’s USDT stablecoin, further merging blockchain technology into the regional economy.
Saudi Arabia’s latest AI investments establish the country in a leading position in the global AI industry, enabling innovation and drawing top-tier technology companies.
