This state-backed entity will focus on developing data centers, supporting startups, and building infrastructure to advance AI technologies.

The initiative, named the "Excellence Project," aims to attract top talent to the Kingdom, enhance the local tech ecosystem, and encourage tech companies to invest in the region, according to Bloomberg.

This endeavor builds upon Saudi Arabia's ongoing efforts to establish itself as a global leader in AI development. The structure mirrors that of the " Alat Fund," a sustainable manufacturing fund supported by $100 billion from the Saudi Public Investment Fund (PIF), chaired by Crown Prince Mohammed bin Salman.

The PIF seeks to collaborate with major global companies to drive innovation. The Saudi government has yet to comment officially on this initiative.

A Broader AI Vision

The AI center developed by the PIF and Alphabet's Google may serve as a foundation for a more extensive initiative. The two entities plan to invest between $5 billion and $10 billion in this partnership, focusing on creating AI models in the Arabic language.

The "Excellence Project" intends to collaborate with leading tech giants, with Saudi Arabia providing hashtag#infrastructure and capital. The investment is expected to range from $50 to $100 billion.

The project may eventually involve multiple government agencies, aiming to fund AI infrastructure and startups, and to bridge the expertise gap with the hashtag#UnitedStates and hashtag#China in the AI sector.

The Kingdom envisions establishing an AI entity as a "national champion," aligning with its Vision 2030 strategy to diversify the economy beyond fossil fuels. Saudi Arabia aims to rank among the top 15 countries in AI by adopting technology domestically throughout this decade and exporting it by 2030.

The Kingdom has launched major research centers and ministries dedicated to AI and has developed large language models similar to OpenAI's ChatGPT.

The PIF aims to initially manage this new fund, with contributions from other investors as it expands.

Mohammed AlQahtani - Follow
CEO @ Saudi Arabia Holding Co.