You are currently viewing Saudi Arabia Plans Huge AI Centers for a Future Beyond Oil

Saudi Arabia Plans Huge AI Centers for a Future Beyond Oil

Rate this post

Saudi Arabia wants to become a global leader in artificial intelligence (AI) and reduce its dependence on oil. To do this, the country is building massive AI data centers and partnering with top U.S. tech companies.

Recently, former U.S. President Donald Trump supported Saudi Arabia’s efforts and asked for even more U.S. investment from the Kingdom—$400 billion more than the $600 billion already discussed with Crown Prince Mohammed bin Salman.

Before their meeting, the Crown Prince launched a new company called Humain, which will manage and develop AI in Saudi Arabia. Trump also gave Humain and UAE-based AI company G42 more access to powerful U.S.-made AI chips, especially from Nvidia. These chips were previously restricted under the Biden administration.

Humain has now partnered with Nvidia and AMD to use their AI chips and technology to build large AI centers in Saudi Arabia. Over the next five years, the country plans to install hundreds of thousands of Nvidia’s best AI chips, starting with 18,000 chips for a new Saudi supercomputer.

Experts say these AI deals are part of a bigger game between countries like the U.S., China, and Saudi Arabia. Saudi Arabia wants to be the top AI power in the Middle East through its Vision 2030 plan. At the same time, U.S. tech companies like Google, Meta, OpenAI, and Musk’s xAI are looking for money to grow, and Saudi Arabia is ready to invest. The U.S. also wants to keep Saudi Arabia close, rather than letting it work more with China.

The U.S. government called these new deals “historic” and a sign of a stronger partnership between the U.S. and Saudi Arabia.

The company Humain is backed by Saudi Arabia’s Public Investment Fund, which is using oil money to invest in tech. Experts say this shows how serious Saudi Arabia is about becoming a central player in the global AI industry. The Kingdom wants to be involved in every part of the AI supply chain.

According to analysts, Saudi Arabia knows it won’t beat the U.S. or China in global AI power, but it hopes to lead in Arabic-language AI tools and be the main AI power in the region. However, some experts worry that giving Saudi Arabia so much access to U.S. tech could create national security risks in the future.

U.S. tech companies also see a big opportunity. Nvidia and others are pushing to reduce export restrictions so they can sell more chips. OpenAI released a report urging U.S. leaders to accept investments from countries like Saudi Arabia to keep them away from China.

Some startups are already making moves. For example, Scale AI, backed by Amazon, will open an office in Saudi Arabia this year. The company’s top executive used to work under Trump in the White House.

Saudi Arabia has already invested in U.S. tech through companies like Twitter, Uber, and the Softbank Vision Fund. But now, the Kingdom wants to build its own AI future. With enough money and resources, Saudi Arabia is betting it can become essential in the growing AI world.

Experts believe the Kingdom is serious about creating new income streams beyond oil. By getting involved early in AI, Saudi Arabia hopes to become a key player in the future tech economy.

Source: fortune