Key Points:
- Saudi Arabia plans to establish a $40 billion fund for Artificial Intelligence investments. PIF has engaged in discussions with various potential partners.
- Andreessen Horowitz may set up an office in Riyadh to deepen collaboration; the fund’s structure and operations remain subject to potential changes.
- The AI fund is expected to commence in the second half of 2024 and aims to support tech startups in the AI sector, including chip makers and data centers.
- Yasir Al-Rumayyan highlighted Saudi Arabia’s aspirations to become a leading AI hub, emphasizing the nation’s political will and ample financial resources.
Saudi Arabia’s government is reportedly laying the groundwork for a significant investment initiative in artificial intelligence (AI), aiming to establish a fund of approximately $40 billion for this purpose, according to sources familiar with the matter as reported by the New York Times on Tuesday.
In recent weeks, representatives of Saudi Arabia’s Public Investment Fund (PIF) have engaged in discussions with various potential partners, including prominent U.S. venture capital firm Andreessen Horowitz.
According to the report, discussions have revolved around the potential establishment of a partnership between Andreessen Horowitz and PIF, with the possibility of the U.S. firm establishing an office in Riyadh to facilitate collaboration. PIF officials have explored the potential roles of Andreessen Horowitz in the envisioned fund and the operational mechanisms involved, although plans remain subject to change.
The proposed AI fund, anticipated to launch in the second half of 2024, aims to attract participation from various venture capitalists. Saudi representatives have indicated a keen interest in supporting a diverse range of tech startups associated with AI, encompassing chip manufacturers and large-scale data centers, among others.
PIF’s governor, Yasir Al-Rumayyan, has been actively involved in discussions surrounding the initiative. Last month, Al-Rumayyan positioned Saudi Arabia as a promising hub for AI activity outside the United States, citing the nation’s abundant energy resources and substantial funding capacity. He emphasized the kingdom’s “political will” to drive AI projects forward and its readiness to deploy ample financial resources to foster the technology’s development.
While PIF and Andreessen Horowitz representatives have yet to comment on the matter officially, the proposed AI fund underscores Saudi Arabia’s commitment to harnessing emerging technologies for economic diversification and technological advancement.
