Saudi Arabia has pledged $14.9 billion to artificial intelligence via collaborations with major technology companies such as Google, Lenovo, and Alibaba. The country is working toward becoming a regional center for artificial intelligence.
Summary
Saudi Arabia has pledged $14.9 billion to artificial intelligence (AI) projects and initiatives, partnering with major tech companies like Google, Lenovo, and Alibaba. The country aims to become a regional center for AI, with Aramco, the seventh-largest business globally, partnering with Groq for cloud computing capabilities. Other tech giants include Google, Qualcomm, Alibaba Cloud, Salesforce, Databricks, Tencent Cloud, and SambaNova.
During a technology conference in Riyadh, the capital of Saudi Arabia, the country revealed that it will invest $14.9 billion in artificial intelligence (AI) projects and initiatives.
On February 9, Saudi Minister Abdullah bin Amer Alswaha said that the kingdom will spend $14.9 billion on artificial intelligence, new technologies, and cloud computing in collaboration with global technology pioneers. Some of the technology partners include Google Cloud, Lenovo, Alibaba Cloud, Qualcomm, Groq, and Salesforce, to name a few.
Ahmad Al-Khowaiter, who is the executive vice president of technology and innovation at Aramco, stated:
“Scale is the most important aspect of our (Aramco) company. This is why we need to work together since no enterprise can fulfill artificial intelligence’s potential. It must be a cooperation, including several firms that implement the technology we want.”
According to CompaniesMarketCap statistics, Aramco is the seventh biggest business in the world by market capitalization, behind major global technology companies like Apple, Amazon, Nvidia, Microsoft, and Google.
Tech Giants Fund Saudi Arabia’s AI Center
Al-Khowaiter said that the Saudi firm has teamed with Groq in a $1.5 billion contract to develop cloud computing capabilities driven by artificial intelligence and plans to establish deals with additional AI startups.
Middle Eastern AI potential
Alat, a large manufacturing company from Saudi Arabia, and Lenovo have announced a $2 billion investment to create a local facility that would focus on sophisticated manufacturing and technology based on artificial intelligence and robots. As part of the agreement, Lenovo will also set up a regional headquarters in Riyadh.
Google, Qualcomm, and Alibaba Cloud have also announced that they will be launching a number of programs focused on localized AI innovation.
Furthermore, Salesforce, Databricks, Tencent Cloud, and SambaNova have all pledged to spend $500 million, $300 million, $150 million, and $140 million, respectively.
On February 6, Tether, a stablecoin issuer, announced a collaboration with Reelly Tech, a real estate marketplace located in the United Arab Emirates. This is a separate but simultaneous development.
The goal of the agreement is to make property transfers easier by utilizing Tether’s USDT stablecoin.
Also Read: Saudi Investors Banned from FTX’s Anthropic Stake Offer Over National Security:
Artificial intelligence firm Anthropic has refused to take financing from Saudi Arabia, which owns 8% of its shares. The company is selling class B shares for $18.4 billion, which are currently valued at $18.4 billion. Despite FTX’s insolvency, big tech companies like Amazon, Alphabet, and Salesforce have contributed almost $7 billion to Anthropic in recent years. The company faces competition from OpenAI’s ChatGPT and its sophisticated language model. Anthropic has taken a firm stance against taking investments from Saudi Arabia, but it has no intention of taking on other sovereign wealth funds, such as Mubadala in the UAE. The Public Investment Fund (PIF) of Saudi Arabia is in talks with venture capital company Andreessen Horowitz to establish a $40 billion fund specifically for investments in artificial intelligence. Anthropic’s national security concerns with Saudi Arabia may stem from dual-use technology, which includes both civilian and military software and hardware…[Read More]
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