thecoinrise.com
Saudi Arabia is ready to make a groundbreaking move, with reports emerging of plans to establish a colossal $40 billion investment fund dedicated to artificial intelligence (AI) initiatives. If realized, this ambitious endeavor would solidify the region’s position as a major player in the global AI landscape.
According to sources familiar with the matter cited by The New York Times, the Saudi Arabian government is contemplating the creation of this massive fund in the latter half of the year. The fund, to be sourced from the Kingdom’s substantial $900 billion sovereign wealth fund, aims to fuel advancements in AI technology and infrastructure.
As reported earlier by TheCoinRise, Saudi Arabia inked a memorandum of understanding (MoU) with The Sandbox (SAND) for the promotion of metaverse-related projects.
Saudi Arabia Goes Big on AI
Key figures within the Saudi Arabian Public Investment Fund are reportedly exploring a partnership with Silicon Valley venture capital titan Andreessen Horowitz (a16z), which recently opened its first office outside the US in London, to oversee the deployment of these AI investments.
Such a collaboration could potentially see a16z establish a presence in Riyadh, the capital of Saudi Arabia, signaling a deepening integration of global tech expertise into the Kingdom’s AI ecosystem.
Harnessing Transformative Power of AI
The proposed fund underscores Saudi Arabia’s commitment to harnessing the transformative power of AI across various sectors.
In addition to investing in established chip makers and data centers capable of powering AI applications, the Kingdom is contemplating the creation of its own AI-driven enterprises, further fostering innovation and economic diversification.
The potential partnership between Saudi Arabia and a16z has been in the pipeline since April 2023, reflecting a concerted effort to leverage Silicon Valley’s expertise in driving AI innovation.
Ben Horowitz, one of a16z’s founders, shares a rapport with Saudi Arabia’s Public Investment Fund governor, Yasir Al-Rumayyan, underscoring the collaborative spirit driving these discussions.
Saudi Arabia Takes a Bold Step
This initiative comes at a time when global attention to AI safety and regulation is intensifying. U.S. President Joe Biden’s executive order for new AI safety standards, coupled with commitments from leading AI firms, highlights the importance of responsible AI development.
The use of measures like the Defense Production Act to ensure transparency in AI safety testing reflects a proactive approach to addressing emerging challenges.
Saudi Arabia’s bold foray into AI investment mirrors broader trends in the tech landscape, where nations and corporations alike are recognizing the strategic importance of AI in driving economic growth and competitiveness. Notably, the region is also experimenting with the concept of a central bank digital currency (CBDC).