Saudi Arabia Ventures into AI Investment... "Creating a $40 Billion Fund"

Saudi Arabia, the 'oil-rich nation,' is set to establish a fund worth approximately $40 billion (about 53.58 trillion KRW) to invest in artificial intelligence (AI). The plan includes supporting AI technology startups as well as considering the establishment of its own companies.

According to the New York Times (NYT) on the 19th (local time), representatives of Saudi Arabia's sovereign wealth fund, PIF, recently met with Andreessen Horowitz, a U.S. IT venture investment firm, to discuss potential partnerships based on this initiative.

At the meeting, the Saudi side expressed its intention to support AI-related technology startups, including chip manufacturers necessary for next-generation computing and vast data centers. The possibility of founding its own AI startups was also mentioned. Multiple sources indicated that these investments could accelerate in the second half of 2024. They also added that there is openness to participation from other venture capital firms.

The NYT reported, "Saudi Arabia is raising massive funds for AI investment," and "it could become the world's largest investor in the AI sector." This is seen as reflecting Saudi Arabia's ambition to diversify its economy beyond being an oil-rich country and to establish itself as a more influential nation. Saudi Arabia is already demonstrating this approach through its sovereign wealth fund, which manages assets exceeding $900 billion.