Saudi Arabia is reportedly looking to massively invest in the AI economy, allotting $40 billion to technology companies such as AI tech start-ups, AI chip makers, and AI data centers, as per a report by the New York Times.
Three briefed individuals reportedly confirmed Saudi Arabia's $40 billion plan, adding that the plans could still change. The projected funds could potentially make the Middle Eastern country the World's biggest AI Investor.
Officials of Saudi Arabia's Public Investment Fund have reportedly been in talks with financiers in leading venture capital firms in Silicon Valley in recent weeks about a possible partnership and investment.
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The proposal would highlight the oil-rich country's aspirations in international business and its initiatives to diversify its economy and become a more significant participant in geopolitics.
The Middle Eastern country, with more than $900 billion in assets, works toward these objectives through its sovereign wealth fund.
Representatives of the Saudi fund have talked about the part Andreessen Horowitz, who is already a big AI investor, plays, may play, and how such a fund would operate.
Unprecedented AI Funds
The $40 billion goal would be far more than the average sums raised by American venture capital firms; the only company that could match it would be SoftBank, a Japanese conglomerate that has long held the title of being the greatest global investor in start-ups.
The Wall Street banks are reportedly assisting in forming the Saudi tech fund; the worldwide AI craze has driven up the prices of both public and private firms as optimistic investors try to discover or create the next OpenAI or NVIDIA. For example, the start-up Anthropic raised almost $7 billion in funding in just one year, an amount that is practically unheard of in the venture capital industry.
Government AI Investments
The US recently announced that it will spend more than $3.3 billion on artificial intelligence to address AI regulations and the hazards associated with this developing technology and to fund the field's extensive growth across numerous federal government agencies.
The proposed budget allocates over $3 billion to multiple agencies for the conscientious creation, experimentation, procurement, and incorporation of innovative artificial intelligence applications across the Federal Government.
Additionally, the budget suggests mandating agencies increase their AI investment by $300 million to control major risks and advance the use of the technology for the general public's benefit.
On the other hand, it was also reported that the UK intended to invest more than £100M, or about $125M, in total to enhance its artificial intelligence research and regulation to handle the advantages and risks of AI. Nine new AI research sites around the UK are the centerpiece of the plans.
Nearly £90 million will be spent on creating nine new research hubs throughout the UK and a partnership with the US on ethical AI. The hubs will help British AI experts apply the technology to disciplines like chemistry, mathematics, and medicine.
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(Photo: Tech Times)
