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Saudi Arabia to Invest $40 Billion in Artificial Intelligence

Saudi Arabia is planning to create a $40 billion fund to invest in artificial intelligence (AI).

The New York Times reported on Tuesday, citing three people familiar with the plans, that the Saudi government is looking to form a new fund worth $40 billion and intends to allocate this budget to investments in the field of artificial intelligence.

Representatives of Saudi Arabia’s Public Investment Fund (PIF) have reportedly held talks in recent weeks about a potential partnership with US venture capital firm Andreessen Horowitz and other financial institutions. As part of these talks, Andreessen Horowitz has been offered the opportunity to open an office in Riyadh, the capital of Saudi Arabia.

Officials from Saudi Arabia’s Public Investment Fund have discussed the role that Andreessen Horowitz will play in the country’s AI projects. They are also considering how the new $40 billion fund will operate. No final decision has been made yet, and the Saudi government’s plans are subject to change.

Other financial companies may also play a role in Saudi Arabia’s major project. The New York Times says the project is expected to launch in the second half of 2024.

Saudi representatives have reportedly told various companies that the country is very interested in financially supporting AI startups, including chipmakers and large data centers.

Last month, the head of PIF said that Saudi Arabia, thanks to its energy resources and investment capabilities, will become a center for artificial intelligence outside the United States. He also noted that Saudi Arabia has the political will to launch major AI projects and play a role in nurturing the technology industry.

Here are some key points from the article:

  • Saudi Arabia plans to create a $40 billion fund to invest in AI.
  • The fund will be managed by the Public Investment Fund (PIF).
  • PIF has held talks with Andreessen Horowitz and other financial institutions about a potential partnership.
  • The fund is expected to launch in the second half of 2024.
  • Saudi Arabia is interested in supporting AI startups, including chipmakers and large data centers.

This is a significant development for Saudi Arabia and the global AI industry. The investment of $40 billion would make Saudi Arabia one of the largest investors in AI in the world. It would also signal the country’s commitment to developing a strong AI sector and becoming a major player in the global technology landscape.

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