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Saudi Arabia Mulls $40 Billion AI Investment, Andreessen Horowitz Eyed as Partner

Algoine News
Summary:
Saudi Arabia's government is considering a $40 billion investment fund for artificial intelligence (AI) projects, potentially launching later this year. The country's Public Investment Fund may collaborate with Silicon Valley venture capital firm Andreessen Horowitz to manage these investments. The fund, backed by the kingdom's $900 billion sovereign wealth fund, seeks to support chip manufacturing companies and large data centers capable of powering AI technology.
The Saudi Arabian government appears to be contemplating the establishment of a $40 billion investment fund for artificial intelligence (AI) ventures, potentially launching in the latter half of this year. The country's Public Investment Fund is also rumored to be exploring a collaboration with Silicon Valley VC firm Andreessen Horowitz (a16z), to manage these AI investments, according to sources familiar with the plans cited by The New York Times on March 19. Other venture capitalists may also partake in the AI fund, and the partnership might result in a16z setting up a branch in Saudi Arabia’s capital, Riyadh. The fund's governor Yasir Al-Rumayyan is said to be acquainted with Ben Horowitz, one of the founders of a16z. If the $40 billion investment materializes, Saudi Arabia would become a major investor in AI, dwarfing Microsoft's total investments in chatbot development company OpenAI which stand at $13 billion. The proposed AI fund would be financed from the Kingdom’s massive $900 billion sovereign wealth fund, with plans to support companies producing chips and large data centers, key for AI operations, and even possibly starting new AI enterprises. The idea of a potential partnership between Saudi Arabia and a16z has been in discussion since as early as April 2023, in which Horowitz lauded Saudi Arabia as an up-and-coming player in the startup world during an interview with ex-WeWork CEO Adam Neumann. Last October, in a move toward enhanced AI safety measures, U.S. President Joe Biden signed an executive order which prompted pledges from 15 top-tier AI firms. Among the recently enacted policies is the usage of the Defense Production Act to encourage AI firms to share critical information, such as outcomes of AI safety tests, with the Department of Commerce. This came in the wake of a request from OpenAI’s CEO Sam Altman for a whopping $7 trillion from the neighboring United Arab Emirates to fund the creation of more sophisticated semiconductor chips.

Published At

3/20/2024 3:00:39 AM

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