Saudi Unveils $14.9 Billion AI Push
Saudi Arabia announced a big investment of $14.9 billion in Artificial Intelligence, Cloud Computing, and other emerging technologies. The plans were showcased at a tech conference in Riyadh on Feb. 9 in collaboration with some of the world’s largest technology firms.
Saudi Minister of Communications and Information Technology Abdullah bin Amer Alswaha further reiterated that the kingdom will collaborate with global tech giants, including Google Cloud, Lenovo, Alibaba Cloud, Qualcomm, Groq, and Salesforce, among others. These collaborations go hand in hand with the kingdom’s ambition to take the lead in AI-driven innovation and digital transformation.
Aramco’s Role in AI Growth
The EVP of Technology and Innovation at Aramco, Ahmad Al-Khowaiter, talked about collaboration in scaling AI solutions.
“Our business is all about scale. That’s why we need to partner, and no one company can deliver the promise of AI,” Al-Khowaiter said.
Aramco is the world’s seventh-biggest company by market capitalization, eager to implement AI solutions across the broad spectrum of operations. It is partnering up with the leading AI companies to improve efficiency and increase technological capabilities as part of Saudi Arabia’s initiative to develop AI capabilities.
Key AI Investments and Partnerships
The Saudi Arabian strategy for AI expansion includes several large-scale investments:
- Groq Partnership: Aramco signed a $1.5 billion contract with AI chipmaker Groq to develop cloud-based AI solutions.
- Lenovo & Alat Collaboration: Saudi manufacturing giant Alat and Lenovo pledged an investment of $2 billion to establish an AI-powered manufacturing and robotics facility in Riyadh, while Lenovo will be establishing a regional headquarters in the city.
- Google, Qualcomm & Alibaba Cloud: These companies will launch AI-driven projects aimed at fostering localized AI innovation.
- Other major investments in AI include Salesforce with $500 million, Databricks with $300 million, Tencent Cloud with $150 million, and SambaNova with $140 million.
AI and Blockchain Growth in the Middle East
Saudi Arabia’s investment in AI also fits into the broader tech revolution in the Middle East. In a separate development, stablecoin issuer Tether announced on Feb. 6 that it was partnering with UAE-based Reelly Tech. The companies seek to make real estate transactions more accessible using the USDT stablecoin.
Saudi Arabia’s aggressive expansion into AI underscores ambitions to be the leading AI hub in the region, driving technological advancement and global partnerships.
