Saudi Arabia is planning to create a fund of $40 billion to invest in artificial intelligence (A.I.) technology. This move would make Saudi Arabia the largest investor in A.I. globally and demonstrate its ambitions in business and geopolitics. The fund is being developed in collaboration with Wall Street banks and discussions have taken place with venture capital firm Andreessen Horowitz. The investment in A.I. is part of Saudi Arabia’s efforts to diversify its economy and reduce its reliance on oil. The cost of funding A.I. projects is high, but the potential returns are significant, leading to a flurry of investment in the field.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Saudi Arabia plans $40 billion AI fund | Increase in investment in AI technology | Saudi Arabia becomes largest investor in AI, reshaping economy and geopolitical influence | Diversify economy, establish influence, global business ambitions |