Saudi Arabia Launches $100B Initiative to Develop AI Ecosystem

Saudi Arabia has announced it is launching a $100 billion-backed initiative to develop an extensive AI ecosystem in the country spanning innovation, infrastructure and talent development 

Named Project Transcendence, the initiative would see the country’s Public Investment Fund put money into data center expansion, tech startups, workforce development and partnerships with leading technology firms.  

The Middle Eastern country wants to rival existing top AI hubs, including nearby United Arab Emirates and even Silicon Valley, to rank among the top 15 in the world for AI by the end of the decade, by which time it wants to be an exporter of AI solutions. 

This would include nurturing startups and creating a general ecosystem for AI innovation and experimentation. 

As Project Transcendence progresses, the country is expected to focus on workforce training, encouraging AI literacy and building supportive regulatory frameworks to attract and retain top-tier talent.

As part of the initiative, the investment fund plans to partner with major technology firms. It is already working with Google, which earlier in the month unveiled plans to establish an advanced AI hub in Saudi Arabia that is anticipated to contribute as much as $71 billion to the country’s economy.

Related:Saudi Arabia Plans $40B Investment in AI

Through Project Transcendence, Google would invest up to $10 billion into AI-focused projects. The collaboration would include the development of Arabic-language models to address the gap in AI accessibility in the region. 

Other major technology firms also have invested in the country, including Microsoft, which invested $2.1 billion in a global super-scaler cloud, Oracle with an  announced $1.5 billion to launch new cloud areas and Huawei, which has invested $400 million in cloud infrastructure.

Project Transcendence aligns with Saudi Arabia’s Vision 2030 program, which focuses on diversifying its economy away from oil to technological and digital innovation, for which AI is a key pillar. 

In keeping with this program, the Public Investment Fund previously invested $100 billion into a sustainable manufacturing initiative called, Alat, which aims to make Saudi Arabia a Global Center for Electronics and Advanced Industrials.