New AI Kingdom on Saudi Billion-Bid to Rule AI Industry

Saudi Arabia is flexing its financial muscle to become a top-tier player in artificial intelligence. Backed by the $940 billion Public Investment Fund (PIF) and spearheaded by a newly formed state AI company called Humain, the kingdom plans an unprecedented push—building data centers, launching a $10 billion venture fund, and striking blockbuster deals—with the aim of reshaping the global AI landscape.

PIF and Humain: Power Players in AI

Under Crown Prince Mohammed bin Salman’s watch, Humain is the vehicle for Saudi AI ambitions. PIF will seed it with capital and influence, while Humain’s mandate covers everything from infrastructure to model development:

• $10 B Venture Fund: Targeting startups in the US, Europe, and Asia to gain equity stakes and technology access.
• $23 B Infrastructure Deals: Agreements signed with Nvidia, AMD, AWS, and Qualcomm to supply chips, cloud services, and edge-computing gear.
• 6.6 GW Data Center Goal: A network of hyper-scale facilities by 2034, at an estimated cost of $77 billion, to process roughly 7% of global AI training and inference by 2030.

Strategic Partnerships and Global Reach

Humain isn’t going it alone. It’s in talks with leading AI labs—OpenAI, xAI, and top venture firms like Andreessen Horowitz—to co-develop services and secure priority access to cutting-edge models. Google Cloud also plans a joint $10 billion AI hub in Dammam with PIF and Humain, aiming to serve companies across the Middle East and North Africa.

Building Local Talent and Governance

Saudi Arabia knows that hardware and cash aren’t enough. To close its AI skills gap, the kingdom is:

• Upskilling Programs: Partnering with universities and bootcamps to train thousands of engineers in machine learning and data science.
• Arabic-Language AI: Funding projects to improve natural-language understanding for Arabic dialects, boosting regional relevance.
• Regulatory Framework: Empowering the Saudi Data & AI Authority (SDAIA) and enforcing the Personal Data Protection Law (PDPL) to safeguard data and build trust.

Facing Financial and Regional Challenges

With oil revenues under pressure and costly megaprojects like NEOM vying for PIF dollars, Humain must balance ambition with prudence. The kingdom also competes with the UAE’s G42 and Qatar’s AI initiatives—each backed by their own sovereign wealth funds and global partnerships.

What This Means for the AI Industry

Saudi Arabia’s entry transforms the AI funding map. Startups gain a new deep-pocketed backer, chip makers see demand surge, and cloud providers fight to host the next AI boom. At the same time, global regulators will watch closely—ensuring a second “AI superpower” doesn’t skew competitive or ethical standards.

Frequently Asked Questions

Q1: What is Humain’s main goal?
To build a fully integrated AI ecosystem—covering data centers, venture funding, model partnerships, and local talent development—positioning Saudi Arabia as a global AI hub.

Q2: How will Saudi Arabia address its AI skills shortage?
Through university collaborations, intensive bootcamps, and scholarships; by expanding Arabic-language AI research; and by creating incentives for global experts to relocate to the kingdom.

Q3: Could PIF’s other commitments derail this plan?
Possibly. With significant investments in tourism, real estate, and Vision 2030 megaprojects, Humain must prove early AI wins to keep securing capital amid fluctuating oil prices.

Sources Financial Times