Saudi Arabia plans to launch $40B AI investment fund with a16z monitoring: report
The government of Saudi Arabia is said to be considering creating a $40 billion investment fund to invest in artificial intelligence in the second half of the year.
The representatives behind Saudi Arabia's Public Investment Fund are considering a partnership with Silicon Valley venture capital firm Andreessen Horowitz (a16z) to oversee AI investments, The New York Times reported on March 19, citing three people familiar with the matter.
Other venture capitalists may also participate in the AI fund and the a16z partnership could see it set up an office in the country's capital, Riyadh.
Ben Horowitz, one of a16z's founders, is friends with the fund's governor, Yasir al-Rumayan, the Times reported.
If the $40 billion investment goes ahead, it will make Saudi Arabia the largest investor in the AI space. Two of the three people cited by the Times predicted the fund could launch in the second half of 2024, but plans could still change.
By comparison, Microsoft has poured $13 billion in multiple investments into ChatGPT creator OpenAI — less than half of Saudi Arabia's planned funding.
Saudi Arabia's AI Fund is the kingdom's $900 billion sovereign wealth fund, which seeks to invest in chipmakers and big data centers that have the potential to develop AI technology.
He also intends to start his own AI companies.
Related: Saudi Arabia Launches ‘Traditional' Metaverse to Celebrate Anniversary
Discussions about a possible partnership between Saudi Arabia and a16z have been underway since at least April 2023.
In an April 2023 interview with former WeWork CEO Adam Neumann, Horowitz lauded Saudi Arabia as a “startup country” while suggesting the United States was beginning to gain traction in the startup scene.
.@a16z founders @bhorowitz and @pmarca spoke with Adam Nauman about Saudi Arabia at a Saudi-sponsored conference last week.
Some takeaways: — SA hailed as a “starter country” — “His Royal Highness” acts as SA's de facto “founder” — US slow, SA fast pic.twitter.com/eUIM1ZN1cv
— This Week in Startups (@twistartups) April 5, 2023
US President Joe Biden last October issued an executive order for new AI security standards that received pledges from 15 major AI companies.
One of the recently implemented measures includes using the Defense Products Act to urge AI firms to report “critical information” AI security test results to the Commerce Department.
OpenAI CEO Sam Altman said last month that Saudi Arabia is seeking $7 trillion to build more advanced semiconductor chips than its neighbor, the United Arab Emirates.
Magazine: ‘AI killed the industry': EasyTranslate boss adapting to change
