Saudi Arabia Launches $100 Billion AI Initiative 'Project Transcendence'

Riyadh, Saudi Arabia — Saudi Arabia has announced plans to launch an ambitious artificial intelligence (AI) initiative called "Project Transcendence," potentially backed by up to $100 billion (SR376 billion). This move aims to establish the kingdom as a technological hub, Bloomberg reported, citing sources familiar with the matter.

Investment Focus and Goals

The proposed initiative is set to invest heavily in key areas such as data centers, which provide the necessary computing power and storage for AI; tech startups that drive innovation and agility in the sector; and other critical infrastructure needed to support AI development, such as high-speed networks and cloud services. The project also plans to attract top talent and encourage leading tech companies to invest in Saudi Arabia, creating a fertile environment for AI innovation.

Strategic Structure and Partnerships

With a structure reminiscent of the $100 billion sustainable manufacturing fund, Alat, which is supported by Saudi Arabia's Public Investment Fund (PIF), "Project Transcendence" is envisioned to accelerate the country's efforts to become a global AI leader.

A key aspect of the initiative involves a potential collaboration between Saudi Arabia's PIF and Alphabet, Google’s parent company, which could see an investment ranging from $5 billion to $10 billion. This partnership, reportedly in the early stages, is expected to focus on developing Arabic-language AI models, marking a significant step forward for regional AI capabilities.

Bridging the AI Expertise Gap

The project will seek partnerships with major technology firms, providing them with infrastructural support and capital, with investment figures potentially reaching between $50 billion and $100 billion. The collaboration aims to bridge the AI expertise gap between Saudi Arabia and leading nations such as the United States and China.

Vision 2030 Alignment

In line with Saudi Arabia’s Vision 2030 strategy, the initiative aspires to position the kingdom among the top 15 countries in AI by the end of the decade. The plan includes the domestic adoption of AI technologies and the subsequent export of these technologies beginning in 2030. Officials have indicated that the vision is to create an AI powerhouse capable of rivaling the likes of Abu Dhabi’s G42 tech conglomerate.

Saudi Arabia's focus on AI is part of its broader effort to diversify the economy and reduce dependence on oil. The ambitious plan showcases the kingdom’s determination to play a major role in shaping the future of technology and innovation in the Middle East and beyond.