Key Takeaways
- Wa’ed Ventures, a division of Saudi Aramco, is investing $100 million in AI start-ups to help Saudi Arabia achieve its goal of being a global leader in AI.
- Over a three-year period, an advisory council including former Meta and Amazon specialists will direct early-stage funding.
- This action is a component of Saudi Arabia’s Vision 2030, which aims to diversify the country’s economy away from its reliance on oil.
As part of its strategic plan to establish itself as a global leader in artificial intelligence (AI), Saudi Aramco’s venture capital division, Wa’ed Ventures, has established a $100 million fund to support AI start-ups.
The nation’s Vision 2030 goals, which center on diversifying its economy by investing in high-tech industries and lowering dependency on oil earnings, are in line with this funding initiative.
Saudi Arabia’s Partnerships and Investments
Over the next three years, the Saudi Aramco fund’s investments will be strategically focused on promising AI start-ups that can support Saudi Arabia’s technological ecosystem, according to a Bloomberg article.
To help direct its early-stage investment choices, Wa’ed Ventures has also assembled an advisory board of former professionals from tech behemoths like Amazon and Meta.
Anas Algahtani, acting CEO of Wa’ed, stated that the fund’s objective is to attract foreign talent to Saudi Arabia and encourage local business.
Wa’ed Ventures, Aramco’s $500 million venture capital division, has increased its technology investments this year, investing $15 million in the South Korean chipmaker Rebellions Inc.
Wa’ed has participated in investment rounds for Tenderd, a company supported by well-known investor Peter Thiel, and the AI platform aiXplain.
These actions demonstrate Saudi Arabia’s dedication to becoming a major force on the international scene and the growing momentum in its AI industry.
Groq and Aramco Digital have announced their collaboration to build what is expected to be the world’s largest AI inference data center in Saudi Arabia. The project is scheduled to open by the end of 2024.
Regional AI Competition and Saudi Arabia’s Tech Vision
Wa’ed Ventures is only one example of Saudi Arabia’s dedication to AI
As both countries strive to become regional leaders in technology, the government has been fiercely competing with the UAE to attract significant investments in AI.
As part of its diversification strategy, Saudi Arabia’s Public Investment Fund (PIF) recently raised its stakes in Japanese gaming businesses like Nintendo and Capcom, indicating the kingdom’s aspirations in the entertainment industry.
In August, Aramco committed an additional $100 million for research and development by signing a memorandum of understanding with King Abdullah University of Science and Technology (KAUST).
Over the course of the upcoming decade, this partnership will concentrate on digital solutions, sustainable energy, and innovative materials.
