Saudi Arabia collaborates with a16z to invest $40 billion in the AI industry.

According to a report by The New York Times, the Saudi Arabian government announced last week its plan to invest $40 billion in the artificial intelligence (AI) industry and collaborate with the renowned venture capital firm a16z. The fund is expected to invest in AI companies, chip manufacturers, and large data centers in the latter half of 2024.

Saudi Arabia Establishes $40 Billion AI Fund

The New York Times reported, citing three sources familiar with the matter, that the Saudi Arabian government is planning to establish a $40 billion fund to invest in the field of AI.

a16z Seeks Primary Investors for Artificial Intelligence

In recent weeks, the Saudi Public Investment Fund has been in discussions with the U.S. venture capital firm Andreessen Horowitz (a16z) and other financiers about potential partnership relationships, which would serve as a cooperative relationship with the primary investors behind these investors, indicating the possibility of further collaboration models.

As a result, the a16z team is also considering the possibility of establishing an office in Riyadh, the capital of Saudi Arabia.

Saudi Arabia Aims to Develop New Technologies

This fund is expected to be launched in the second half of 2024. In addition to investing in AI companies, it is also expected to include chip manufacturers and large data centers in its investment portfolio.

Saudi officials stated that compared to other countries, Saudi Arabia can provide advantages in energy and financing capabilities, and the government is willing to promote industrial development.

In fact, this is not the first time in recent years that Saudi Arabia has invested in new technologies. Last year, the Saudi Arabian national oil company also collaborated with SBI to promote semiconductor investments, and even had experience investing in the metaverse.

The Sandbox's parent company, Animoca Brands, receives a $50 million investment from the Saudi fund.