Saudi Aramco’s Wa’ed Ventures commits $100 million to AI startups, adapting to global tech agenda

Saudi Aramco’s Wa’ed Ventures Commits $100 Million to AI Startups, Adapting to Global Tech Agenda

Saudi Aramco’s venture capital arm, Wa’ed Ventures, has announced a significant commitment to advancing artificial intelligence (AI) technology with a $100 million investment into AI startups over the next three years. This initiative is aimed at bolstering Saudi Arabia’s position in the global AI market, aligning with the nation’s broader Vision 2030 strategy, which seeks to diversify its economy beyond oil.

Wa’ed Ventures, a $500 million venture capital wing of the Saudi oil giant, has assembled an advisory board comprising former executives from major corporations like Meta Platforms Inc. and Amazon.com Inc. The board’s key role will be identifying and exploring promising early-stage investments in the AI sector.

The acting Chief Executive Officer of Wa’ed, Anas Algahtani, expressed in a statement on Sunday that the investment plan is designed not only to boost local entrepreneurs but also to localise global talent within Saudi Arabia’s tech landscape. This move is seen as part of Saudi Arabia’s broader ambition to emerge as a top 15 global player in artificial intelligence.

In its recent ventures, Wa’ed invested $15 million in the South Korean semiconductor company Rebellions Inc. Additionally, it has participated in funding rounds for AI-centric firms such as aiXplain and Peter Thiel-backed Tenderd. This strategic investment aligns with the competitive technological rivalry between Saudi Arabia and the United Arab Emirates (UAE), both of which are striving to lead in AI development within the region by establishing extensive data centres and related infrastructure.

US Tightens Investment Regulations on China’s Advanced Technologies

Against the backdrop of Saudi Arabia’s expansive AI investments, the United States government is imposing new regulations to restrain American financial involvement in China’s development of advanced technologies, specifically those with military applications. The regulations, finalized by the Treasury Department and set to take effect on January 2, follow President Joe Biden’s executive order issued in August 2023.

These measures primarily target U.S. investment in sectors such as semiconductors, microelectronics, quantum computing, and artificial intelligence. The Biden administration contends that these domains are critical for the next evolution of military, cybersecurity, and intelligence operations. The rules also require Americans to disclose their participation in certain tech collaborations, with the intent of curbing China’s access to the non-tangential advantages conferred by U.S. financial backing.

Historically, U.S. venture capital investment in China has seen a downward trajectory, plummeting to its lowest in a decade at $1.3 billion in 2022, from a zenith of $14.4 billion in 2018. Analysts assert that the new regulations represent a hardened stance, although their efficacy remains debated. Experts suggest that these rules might be subject to review and potential reinforcement if U.S. political leadership changes after upcoming elections.

These regulatory changes culminate from an extensive internal assessment concerning the extent of permissible U.S. engagement in burgeoning tech sectors, underscoring a pivotal moment in international technology policy amidst increasing global competition.

Source: Noah Wire Services