More

    Saudi Arabia To Establish A $40 Billion AI Investment Fund

    Published on:

    Saudi Arabia plans to invest $40 billion in AI, and with talk of a partnership with A16Z, it could become the industry's biggest investor.

    according to reportIn recent weeks, representatives of Saudi Arabia's Public Investment Fund (PIF) have been discussing possible cooperation with US venture capital firm Andreessen Horowitz and other financiers.

    The investment fund is supervised by a16z

    of A.I. Other venture capitalists may join the fund, and the a16z partnership could set up an office in the capital, Riyadh.

    Ben Horowitz, one of the founders of a16z, is friends with the foundation's president, Yasir al-Rumayyan, according to the Times.

    If the $40 billion deal is approved, Saudi Arabia will become the largest investor in the AI ​​industry. Plans are still subject to change, but the fund could be rolled out in the second half of 2024, according to two of three people close to the deal cited by the Times.

    Also read: What does the EU's AI law mean for startups?

    In contrast, Microsoft has invested a total of $13 billion. Chat GPT We have been developing OpenAI for many years. This amount is less than half of the proposed funding from Saudi Arabia.

    The $900 billion Saudi sovereign wealth fund that powers Saudi Arabia's AI fund will be used to invest in chipmakers and large data centers that can advance AI technology.

    He's even considering starting an artificial intelligence company. Since at least April 2023, there has been talk of possible cooperation between Saudi Arabia and A16Z.

    In an April 2023 interview with former WeWork CEO Adam Neumann, Horowitz praised Saudi Arabia as an “emerging nation” and said the U.S. was starting to lose ground in the startup world. hinted.

    AI in Saudi Arabia

    PIF officials discussed Andreessen Horowitz's potential role and the management of such a fund, the report said, adding that the situation could still change.

    The report also said Saudi officials have informed potential partners that the country is keen to fund various AI-related startups. chip Manufacturers and large data centers.

    PIF's Al Rumayyan proposed the kingdom as a potential hub, citing the kingdom's energy resources and financing capabilities. artificial intelligence Activities outside the United States in the last month.

    Al Rumayan said the kingdom has sufficient resources to support advances in artificial intelligence and the “political will” to see the project through to completion.

    Corporate AI investment is increasing dramatically on a global scale, but saudi arabia With significant investment, it will establish itself as a leading company in this field. It would also achieve Saudi Arabia's overarching goals of strengthening its geopolitical influence and differentiating its domestic business model, which is currently primarily oil-based.

    The Middle Eastern country is working towards these goals through sovereign wealth funds.

    Last October, US President Joe Biden signed an executive order establishing new safety regulations for AI, and 15 major AI companies pledged to comply.

    One recently enacted measure is to use the Defense Production Act to force AI companies to submit “key information” to the Commerce Department, such as the results of AI safety tests.

    Related

    Leave a Reply

    Please enter your comment!
    Please enter your name here