Saudi Arabia plans to create a $40 billion fund to invest in AI

The Saudi government plans to create a fund of about $40 billion to invest in AI. The New York Times reported this with reference to people familiar with the plans.

According to them, in recent weeks, representatives of the Saudi Arabian Public Investment Fund have been discussing a potential partnership with various financiers.

Among them was Andreessen Horowitz, one of the leading venture capital firms in Silicon Valley. Despite the release of these details, the sources warned that the plans could still change.

But if they come true, the tech fund will make Saudi Arabia the world’s largest investor in artificial intelligence. It will also demonstrate the country’s global business ambitions, as well as its efforts to diversify the economy and establish itself as a more influential player in geopolitics.

As you know, the development of AI technology is attracting the attention of many industry representatives. For example, it was recently reported that OpenAI CEO Sam Altman was negotiating to raise funding for an initiative to increase global chip production capacity and expand AI capabilities. The project is called truly large-scale – it may require $5-7 trillion.

According to the NYT, representatives of Saudi Arabia told potential partners that the country is looking to support a number of AI-related tech startups, including chipmakers and large data centers.