Bloomberg reports that Saudi Arabia is ambitiously moving forward with “Project Transcendence,” an initiative designed to position the kingdom as a leading global hub for artificial intelligence (AI) with an investment potentially reaching up to $100 billion. This project, which remains under wraps, aims to significantly enhance Saudi Arabia’s technological landscape by investing in data centers, AI startups, and essential infrastructure.
The initiative is part of a broader strategy to cultivate a robust local tech ecosystem, attract international tech talent, and encourage global tech firms to establish operations within the country, sources told Bloomberg.
“Project Transcendence” echoes the structure of Alat, a fund already backed by $100 billion from the Saudi Public Investment Fund (PIF), aimed at sustainable manufacturing. Just like Alat, this new AI-focused entity would be chaired by Crown Prince Mohammed bin Salman, signaling high-level governmental support.
One of the cornerstone partnerships for this initiative involves an AI hub developed in collaboration with Alphabet Inc.’s Google. This partnership, with investments ranging from $5 billion to $10 billion, focuses not only on general AI advancements but also on the creation of Arabic language AI models. This collaboration could serve as the foundation for wider AI endeavors in the kingdom.
Sources also told the publication that the project’s scope includes forming alliances with major tech companies, where Saudi Arabia would provide infrastructure and capital. Discussions suggest that investments could scale from $50 billion to the full $100 billion, aiming to close the gap with AI leaders like the US and China. This effort underscores Saudi Arabia’s ambition to establish an AI entity that would rival regional tech giants like Abu Dhabi’s G42.
AI development is integral to Saudi Arabia’s Vision 2030 plan, which seeks to diversify the economy beyond oil. The strategy includes becoming one of the top 15 countries in AI by enhancing domestic adoption and then exporting technology. The kingdom has already made strides by establishing research centers and creating large-language models akin to ChatGPT.
Despite the ambitious AI plans, Saudi Arabia faces economic challenges, as seen with the scaling back of the Neom project, a futuristic city development due to budget constraints.
However, the commitment to AI appears undeterred, with previous talks involving partnerships like the potential $40 billion fund with Andreessen Horowitz, which would further underline Saudi Arabia’s investment in AI.
“Project Transcendence” represents more than just financial investment; it’s a strategic move to position Saudi Arabia at the forefront of AI innovation, fostering both economic growth and technological sovereignty.
The project’s success could redefine the kingdom’s role on the global stage, turning it into a powerhouse not just for oil, but for cutting-edge technology. This endeavor, while ambitious, aligns with the kingdom’s vision of transformation and could mark a significant shift in the global tech landscape.
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