Saudi Arabia Unveils $100 Billion 'Beyond Plan' to Become Middle East AI Hub

Saudi Arabia Unveils $100 Billion 'Beyond Plan' to Become Middle East AI HubIn recent years, Saudi Arabia has poured billions of dollars into overseas tech ventures. Now, the Kingdom is turning its attention inwards, allocating $100 billion to an ambitious AI initiative called the "Beyond Plan

Saudi Arabia Unveils $100 Billion 'Beyond Plan' to Become Middle East AI Hub

In recent years, Saudi Arabia has poured billions of dollars into overseas tech ventures. Now, the Kingdom is turning its attention inwards, allocating $100 billion to an ambitious AI initiative called the "Beyond Plan." This plan aims to prioritize domestic tech development, attract investment from major tech companies, and establish Saudi Arabia as the Middle East's AI powerhouse.

The "Beyond Plan" encompasses several key areas, including building GPU-powered data centers for training and running AI models; supporting resource-rich startups to drive AI innovation; and attracting global talent to energize the Saudi AI ecosystem. The plan also emphasizes cultivating "national leaders" in AI to enhance local talent competitiveness.

Crown Prince Mohammed bin Salman launched the national AI strategy back in 2020, but recent developments have accelerated Saudi Arabia's domestic AI ambitions. The launch of ChatGPT sparked an investment frenzy in AI, while neighboring Abu Dhabi, fueled by its advanced Arabic language models, attracted substantial investments, putting Saudi Arabia under immense regional pressure. The "Beyond Plan" aims to create Saudi Arabia's own "G42" and compete with the UAE for the title of the Middle East's AI center.

Furthermore, weakening oil demand has also driven Saudi Arabia to accelerate its AI push. The International Monetary Fund predicts a decline in Saudi oil revenue in the coming years. To address this challenge, Saudi Arabia is seeking economic diversification, and AI is seen as a critical breakthrough point.

The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has been a key driver of economic diversification, actively investing in overseas tech firms like Uber and SoftBank's first Vision Fund. However, in recent years, Saudi Arabia appears to be scaling back overseas spending and dedicating more resources to domestic AI.

While Saudi Arabia is dialing down its overseas investment, its AI investments have not slowed. In March, PIF was reportedly in talks with Silicon Valley venture capital firm Andreessen Horowitz to establish a $40 billion AI fund, which would become a significant force in global AI investment.

While the "Beyond Plan's" specific results remain to be seen, the initiative has already fostered collaborations with overseas tech companies. For instance, Saudi Arabia is working with California-based AI company Groq to oversee the development of its AI data centers and has partnered with Google Cloud to establish an AI center in the Kingdom.

Saudi Arabia is actively seeking partnerships with other nations, aiming to leverage its geographic advantages and market potential to become the Middle East's AI hub. The future holds new opportunities for Saudi Arabia's AI sector, and the "Beyond Plan" will play a crucial role in shaping its trajectory.