Saudi Arabia Invests $70 Billion in AI Infrastructure with Cisco and AMD

Saudi Arabia is making significant strides in its quest to become a major player in artificial intelligence, launching an ambitious initiative that involves an investment of approximately $70 billion in AI infrastructure. This plan includes substantial backing from prominent technology companies such as Cisco and AMD, which will contribute equity investments aimed at enhancing local capabilities in AI model development. Tareq Amin, CEO of the newly established AI company Humain, emphasizes the importance of securing external investment to drive the kingdom's technological advancements.

The strategic push reflects a broader shift in Saudi Arabia's investment strategy, moving away from solely backing U.S. tech firms towards fostering homegrown technological innovations. By developing its own cloud services and data centers, Saudi Arabia aims to create a sustainable environment for AI development that could rival efforts from neighboring regions like the UAE. The kingdom's efforts are not just about technological advancement; they also represent a significant pivot in economic strategy, aiming to leverage its abundant resources to attract global tech investments.

This initiative is part of a larger vision, with Humain planning to set up a $10 billion venture fund dedicated to investing in AI startups that will utilize its technology. This dual-track approach—building both domestic infrastructure and supporting innovative startups—positions Saudi Arabia to potentially become a significant hub for AI advancements, aligning with global trends in technological development. As the kingdom moves forward, the success of this strategy will depend on its ability to navigate the complexities of international partnerships and local market dynamics, ensuring that its investments yield tangible outcomes in the burgeoning AI landscape.