TLDR:
- Saudi government is investing in AI to transform Riyadh into an AI hub
- Founders of AI startups in the Gaia accelerator program are waiting for promised grants and investments
Saudi Arabia’s government is focusing on developing Riyadh into an AI hub, with plans to create 300 new artificial intelligence startups in just three years. However, founders who participated in the Gaia program are facing delays in receiving promised government grants and investments from New Native. The program, backed by the National Technology Development Program, aimed to attract early stage AI founders to Saudi Arabia by offering grants and equity investments. While some startups from the first cohort received grants and partial investments, many others from subsequent cohorts are still waiting for payments.
New Native, the startup accelerator running the Gaia program, explained that the delays were due to issues with securing funds. Some founders expressed frustration at the lack of financial support promised, as they had invested significant amounts to participate in the program. Despite attempts to resolve the delays, founders are still awaiting the payments. The program’s fourth cohort has been suspended until new funding is secured, further adding to the uncertainty surrounding the Gaia program.
The situation highlights the challenges of establishing Riyadh as an AI hub and the Saudi government’s commitment to investing in tech and AI. Various deals with tech giants and plans for AI-focused funds reflect Saudi Arabia’s ambitions to diversify its economy and foster innovation. However, the delays in payments and investments for Gaia program participants underscore the difficulties faced by startups in navigating the Saudi tech ecosystem.
