Saudi Arabia launches $100 Billion AI initiative to lead in global tech
Aiming to rival global tech hubs, Saudi Arabia’s new AI project targets innovation, infrastructure, and talent development.
Saudi Arabia has announced a 100 billion USD initiative aimed at establishing itself as a major player in artificial intelligence, data analytics, and advanced technology. The program, known as Project Transcendence, marks a significant push by the Kingdom to develop a robust AI ecosystem that can rival leading tech hubs, including neighbouring United Arab Emirates and other global technology centers.
This unprecedented investment will focus on building state-of-the-art data centers, supporting startups, and expanding AI infrastructure to drive both domestic growth and international competitiveness. As part of Saudi Arabia’s Vision 2030 plan, this AI project underscores the country’s commitment to economic diversification away from oil, aiming to become a global tech leader within the next decade.
Project Transcendence is expected to channel investments into critical areas needed to create a thriving AI industry. These include data center expansion, tech startups, workforce development, and partnerships with leading technology firms. Sources familiar with the project have indicated that Saudi Arabia intends to recruit top AI talent from around the world, invest in R&D, and incentivize foreign companies to establish a footprint in the Kingdom.
The structure of Project Transcendence closely mirrors that of Alat, a similar 100 billion USD fund led by Saudi Arabia’s Public Investment Fund, which targets sustainable manufacturing. Like Alat, Project Transcendence will co-invest with international firms and large technology companies to maximize its impact and reach. This high-level collaboration highlights Saudi Arabia’s dedication to building strong partnerships that will advance its AI objectives.
One of the initiative’s cornerstone partnerships involves Alphabet’s Google. In collaboration with Saudi Arabia’s PIF, Google is investing between 5 billion USD and 10 billion USD into AI-focused projects that are expected to serve as a springboard for Project Transcendence. Key components of this collaboration include the development of Arabic-language AI models, which will address a substantial gap in AI accessibility for the region, and other localized AI applications tailored to Saudi Arabia’s needs.
Project Transcendence is designed to elevate Saudi Arabia’s position in the global AI sector, helping it bridge the gap with established tech giants in the US, Europe, and Asia. Currently, Saudi Arabia is laying the groundwork to become one of the top 15 countries in AI by the end of this decade. This includes initiatives to adopt AI domestically and ultimately position Saudi Arabia as an exporter of AI solutions by 2030.
Saudi Arabia’s AI strategy aligns with the broader goals of Vision 2030, which emphasize economic diversification through technological and digital innovation. In recent years, the Kingdom has set up research centers, ministries, and educational programs focused on AI. Furthermore, Saudi Arabia has developed advanced language models and other AI capabilities that mirror global projects such as OpenAI’s ChatGPT, signaling its commitment to advancing in the AI field.
Saudi Arabia’s AI ambitions are rooted in its Vision 2030 agenda, which outlines AI as a key pillar in the country’s transition to a knowledge-based economy. By prioritizing AI, the Kingdom hopes to cultivate new revenue streams outside of its traditional reliance on oil. As it builds out Project Transcendence, Saudi Arabia will focus on workforce training, encouraging AI literacy, and building supportive regulatory frameworks to attract and retain top-tier talent.
We have seen how some of the world’s biggest tech companies have already invested in the Kingdom, with Microsoft investing $2.1 billion in a global super-scaler cloud, and Oracle investing $1.5 billion to expand its MENA business by launching new cloud areas in the Kingdom. Huawei has invested $400 million in cloud infrastructure for its services in the Kingdom, while Zoom has partnered with Aramco to launch a cloud area in the Kingdom.
These investments are part of Saudi Arabia’s Vision 2030 plan, which aims to diversify the economy away from its reliance on oil. The plan seeks to attract foreign direct investment and position Saudi Arabia as a leader in technology and innovation.
Source: Benito, Andrea. ''Saudi Arabia launches $100 Billion AI initiative to lead in global tech'' Cio.com. 11/11/2024. (https://www.cio.com/article/3602900/saudi-arabia-launches-100-billion-ai-initiative-to-lead-in-global-tech.html).
