Saudi Arabia to Establish Dedicated Fund for AI Investments

Saudi Arabia's government is reportedly planning to establish a $40 billion fund dedicated to investing in artificial intelligence (AI), according to a report by the New York Times citing sources familiar with the matter.

Representatives of Saudi Arabia's Public Investment Fund (PIF) have engaged in discussions with potential partners, including US venture capital firm Andreessen Horowitz, in recent weeks. Discussions have also included the possibility of Andreessen Horowitz establishing an office in Riyadh, the capital of Saudi Arabia.

The potential fund is expected to support a wide range of tech startups associated with AI, including chip makers and large-scale data centers. Other venture capitalists may also participate in the fund, which is anticipated to launch in the second half of 2024.

PIF's governor, Yasir Al-Rumayyan, has previously highlighted Saudi Arabia's interest in becoming a hub for AI activity outside the US, citing the country's energy resources and funding capacity. Al-Rumayyan emphasized the kingdom's "political will" and financial resources available to support the development of AI projects.

Neither PIF nor Andreessen Horowitz immediately responded to requests for comment on the reported plans. The details of the fund and its operations are subject to change as discussions continue among stakeholders.