Saudi Arabia Plans to Create $40 Billion Fund for Artificial Intelligence Investment: Sources
Saudi Arabia to Invest $40 Billion in Artificial Intelligence Fund
The government of Saudi Arabia is set to create a fund of about $40 billion to invest in artificial intelligence, making it the world’s largest investor in AI. This move is part of the country’s efforts to diversify its economy and establish itself as a key player in the global tech industry.
Representatives of Saudi Arabia’s Public Investment Fund have been in talks with Silicon Valley’s top venture capital firm, Andreessen Horowitz, and other financiers to discuss potential partnerships. The fund aims to support a wide range of tech start-ups tied to artificial intelligence, including chip makers and data centers.
The planned tech fund would not only showcase Saudi Arabia’s global business ambitions but also highlight its growing influence in geopolitics. With assets of over $900 billion, the country’s sovereign wealth fund is driving these efforts to position Saudi Arabia as a major player in the tech sector.
The $40 billion target for the fund would surpass typical amounts raised by U.S. venture capital firms and would only be eclipsed by SoftBank, the Japanese conglomerate known for its investments in start-ups. The fund is expected to launch in the second half of 2024, with potential participation from other venture capitalists.
Despite past challenges in technology investing, Saudi Arabia’s recent moves have been well-received by Silicon Valley and Wall Street. The country’s investments in firms like Uber and partnerships with high-profile individuals like Jared Kushner have signaled its commitment to the tech industry.
The potential partnership with Andreessen Horowitz and the creation of a $40 billion AI fund demonstrate Saudi Arabia’s determination to become a major player in the global tech landscape. As the country continues to make strategic investments in technology, its influence in the industry is expected to grow significantly in the coming years.
