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Saudi Arabia gears up to challenge UAE in AI landscape

Project Transcendence, with a backing of $100b, represents a significant step toward establishing a leading AI hub in Mideast

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  • Initiative is designed not only to attract significant foreign investments but also to cultivate local talent and encourage international tech companies to enhance their presence within the Kingdom.
  • By fostering collaborations with established tech companies, Saudi Arabia seeks to leverage its capital and infrastructure capabilities to amplify its AI landscape.

Saudi Arabia is embarking on an ambitious initiative, dubbed “Project Transcendence,” poised to transform the Kingdom into a leading hub for artificial intelligence (AI).

With an estimated backing of $100 billion, the state-driven endeavour aims to rival the technological advancements of neighbouring countries like the United Arab Emirates, Bloomberg reported.

The initiative underscores Saudi Arabia’s commitment to diversifying its economy under the Vision 2030 framework, which seeks to reduce dependence on fossil fuels and explore new revenue sources.

Central to Project Transcendence is the establishment of a robust infrastructure encompassing data centers, startups, and various resources tailored to foster AI development.

The initiative is designed not only to attract significant foreign investments but also to cultivate local talent and encourage international tech companies to enhance their presence within the Kingdom.

Bridging the gap

The strategic move aligns with previous efforts such as the Public Investment Fund’s (PIF) backing of Alat, a fund focused on sustainable manufacturing, showcasing the Kingdom’s resolve in leveraging large-scale investments for technological advancements.

A pivotal collaboration with Alphabet aims to catalyse this ambition, with plans to allocate between $5 billion and $10 billion toward establishing a state-of-the-art AI hub.

The partnership will focus on developing Arabic language AI models, thus enhancing inclusivity in global AI discourse. This underscores Saudi Arabia’s vision of bridging its technological expertise gap with leading nations such as the United States and China.

Moreover, the overarching goal of Project Transcendence is not merely to create regional competition but also to establish a national champion in AI, potentially on par with established conglomerates like Abu Dhabi’s G42.

Collaborations

By fostering collaborations with established tech companies, Saudi Arabia seeks to leverage its capital and infrastructure capabilities to amplify its AI landscape.

At the recent Future Investment Initiative summit, PIF signed a deal with Google Cloud to establish a new AI hub near Dammam.

Yasir Al Rumayyan, Governor of PIF, emphasised the Kingdom’s potential as a prime location for global tech partnerships, highlighting the PIF’s commitment to fostering an AI-friendly ecosystem through investments in human capital and technology.

He articulated the nation’s aspirations to emerge as a global leader in artificial intelligence (AI) within the next five years.

The PIF’s strategies, underscored by a potential partnership with a leading venture capital firm to establish an AI fund, signify a proactive approach toward harnessing the economic potential of AI, with possible investments reaching up to $40 billion.

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