TLDR: Saudi Arabia Plans $40B AI Investment Fund Overseen by a16z
- Saudi Arabia is considering creating a $40 billion AI investment fund in partnership with a16z.
- If established, Saudi Arabia would become the largest investor in the AI space.
The Saudi Arabian government is reportedly planning to launch a $40 billion investment fund focused on artificial intelligence (AI) in the second half of the year. The fund, overseen by Silicon Valley venture capital firm Andreessen Horowitz (a16z), would potentially make Saudi Arabia the biggest investor in the AI sector. The Public Investment Fund of Saudi Arabia is exploring the partnership with a16z, with the possibility of other venture capitalists participating as well. The collaboration could involve setting up an office in Riyadh, the country’s capital.
Ben Horowitz, one of the founders of a16z, has a personal connection with the fund’s governor, Yasir Al-Rumayyan. The $40 billion fund would be sourced from Saudi Arabia’s $900 billion sovereign wealth fund and aimed at investing in chip makers, large data centers, and possibly establishing its own AI companies. Discussions of the partnership between Saudi Arabia and a16z have been ongoing since April 2023, with Horowitz praising the country as a “startup country.”
In contrast, Microsoft’s investments in AI-focused companies total $13 billion, highlighting the scale of Saudi Arabia’s proposed fund. President Joe Biden’s executive order for AI safety standards and initiatives within the industry, such as OpenAI’s CEO seeking funding from neighboring countries, underscore the global importance of AI investments and innovation.
