Saudi Arabia's $100 Billion AI Venture Aims to Outpace Regional Tech Rivals

Saudi Arabia has unveiled a $100 billion initiative, Project Transcendence, positioning itself as a formidable contender in the global artificial intelligence arena. This ambitious endeavour, spearheaded by the Public Investment Fund in collaboration with Google, seeks to establish a comprehensive AI ecosystem within the Kingdom, encompassing state-of-the-art data centres, support for startups, and expansive infrastructure development.

Central to this initiative is the construction of advanced data centres and the cultivation of a robust AI infrastructure. The collaboration with Google includes an investment ranging between $5 billion and $10 billion, focusing on the development of Arabic-language AI models and other applications tailored to the region's unique needs. This strategic partnership underscores Saudi Arabia's commitment to bridging the technological gap with established AI leaders in the United States, Europe, and Asia.

Project Transcendence is a pivotal component of Saudi Arabia's Vision 2030, a strategic framework aimed at diversifying the nation's economy beyond its traditional oil-based revenues. By fostering a knowledge-based economy, the Kingdom aspires to become a global leader in AI and advanced technologies.

The initiative also emphasizes talent development and research. The King Abdullah University of Science and Technology has accelerated its generative AI research through the establishment of the Center of Excellence on Generative AI . This centre aims to pioneer generative AI technologies addressing pressing challenges and to provide training and upskilling programs to mitigate the shortage of GenAI talent in the region.

Saudi Arabia's efforts have yielded significant recognition. The Kingdom now ranks 14th globally and first in the Arab world in the Global AI Index. Additionally, it holds the third position globally in the Organization for Economic Co-operation and Development’s AI Policy Observatory, trailing only the United States and the United Kingdom.

The economic impact of AI in Saudi Arabia is projected to be substantial. AI is expected to contribute approximately 12% to the nation's GDP by 2030. The Kingdom has also seen a 29% annual growth rate in its AI market, with government spending on emerging technologies increasing by 59% annually. In 2023 alone, Saudi AI companies attracted $1.7 billion in funding.

The Saudi Data & AI Authority has played a crucial role in integrating AI into the public sector. Over 320 government systems have been incorporated into the National Data Lake, processing more than 100 terabytes of data. This digital transformation has led to significant improvements in service delivery across various government entities.