Saudi Aramco’s venture capital arm, Wa’ed Ventures, has announced a $100 million fund to back artificial intelligence (AI) start-ups as part of Saudi Arabia’s strategic move to position itself as a global AI leader.
This funding initiative aligns with the country’s Vision 2030 objectives, which focus on diversifying its economy by investing in high-tech sectors and reducing reliance on oil revenues.
Saudi Aramco Investments and Expanding Partnerships
According to a Bloomberg report, the Saudi Aramco fund’s investments will be strategically directed over the next three years, targeting promising AI start-ups that can contribute to Saudi Arabia’s technology ecosystem.
صندوق واعد فنتشرز، صندوق الاستثمار الجريء البالغ قيمته 500 مليون دولار والمملوك بالكامل من قبل أرامكو السعودية، يعلن عن تخصيص 100 مليون دولار للاستثمار في الشركات العالمية في مراحلها المبكرة في مجال الذكاء الاصطناعي.
كما قام الصندوق بتعيين مجلس استشاري يتكون من خبراء عالميين في… pic.twitter.com/BX24GxZ9cu
— Innovation Hub SA (@ihubsa) October 27, 2024
Wa’ed Ventures has also formed an advisory board of former experts from tech giants like Meta and Amazon, aiming to guide its early-stage investment decisions.
According to Wa’ed’s acting CEO, Anas Algahtani, the fund’s goal is to stimulate local entrepreneurship and bring international talent to Saudi Arabia.
Wa’ed Ventures, Aramco’s $500 million venture capital division, has increased its technology focus this year with recent investments, including $15 million in South Korean chipmaker Rebellions Inc.
Additionally, Wa’ed joined funding rounds for the AI platform aiXplain and Tenderd, a firm backed by renowned investor Peter Thiel.
These moves reflect the growing momentum in Saudi Arabia’s AI sector and its commitment to becoming a key player on the global stage.
Today, we launched the Global AI Infrastructure Investment Partnership, bringing together MGX, BlackRock, Global Infrastructure Partners, and Microsoft to invest in new and expanded data centers, with a total investment of $100 billion, to meet the growing demand for computing… pic.twitter.com/LZcHmjh8wK
— Tahnoon Bin Zayed Al Nahyan (@hhtbzayed) September 18, 2024
In a recent development, Groq announced a collaboration with Aramco Digital to build what is anticipated to be the world’s largest AI inference data center in Saudi Arabia, which is expected to launch by the end of 2024.
Saudi Arabia Tech Vision and Regional AI Competition
Saudi Arabia’s commitment to AI is not limited to Wa’ed Ventures.
The country has been in close competition with the UAE to secure substantial AI investments, with both nations working to establish themselves as regional technology leaders.
Recently, Saudi Arabia’s Public Investment Fund (PIF) increased investments in Japanese gaming companies such as Nintendo and Capcom, signaling the kingdom’s ambitions in the entertainment sector as part of its diversification strategy.
In parallel, Aramco signed a memorandum of understanding with King Abdullah University of Science and Technology (KAUST) in August, committing an additional $100 million for research and development.
This collaboration is set to span the next decade, focusing on sustainable energy, digital solutions, and materials innovation.