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KSA plans $100 billion AI powerhouse

KSA plans $100 billion AI powerhouse
  • PublishedNovember 7, 2024

Saudi Arabia is advancing its tech ambitions with “Project Transcendence,” an initiative that could see up to $100 billion invested to position the kingdom as a global AI hub, Bloomberg reports. The project, still largely confidential, focuses on bolstering Saudi Arabia’s AI infrastructure through investment in data centers, tech startups, and key digital resources.

Part of a wider strategy to foster a local tech ecosystem, Project Transcendence aims to attract international talent and encourage global tech firms to establish a presence in Saudi Arabia, according to sources. The initiative mirrors Alat, a $100 billion Saudi Public Investment Fund-backed project centered on sustainable manufacturing, and would also be overseen by Crown Prince Mohammed bin Salman, underscoring the project’s high-level support.

A significant partnership in this plan is with Google parent Alphabet Inc., which will help develop an AI hub within the kingdom. This $5 billion to $10 billion collaboration will focus on general AI development as well as creating AI models for Arabic language processing, a move that could underpin broader AI applications in the region.

Sources also indicate the project involves forming alliances with major tech companies, with Saudi Arabia providing capital and infrastructure. Investment amounts are projected to range from $50 billion to the full $100 billion, reflecting the kingdom’s ambition to compete with AI leaders like the U.S. and China. This strategy would place Saudi Arabia in contention with regional tech players such as Abu Dhabi’s G42.

AI development aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy beyond oil. The kingdom plans to rank among the top 15 AI nations, prioritizing domestic adoption before exporting AI technology.

Despite economic pressures, evidenced by scaled-back projects like the Neom city, Saudi Arabia’s commitment to AI remains strong. Talks of a potential $40 billion AI fund with Andreessen Horowitz underscore the kingdom’s dedication to this sector. If successful, Project Transcendence could shift Saudi Arabia’s global image from an oil power to a tech innovator, marking a significant transformation in the global technology landscape.

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