Saudi Arabia Plans To Create $40 Billion AI Fund

Saudi Arabia's Public Investment Fund (PIF) is planning to create a significant $40 billion fund dedicated to investments in artificial intelligence (AI), reported The New York Times and confirmed by the CNBC, later on. 

This move is part of the country's efforts to diversify its economy and become a more influential player in global business and geopolitics. The fund aims to become the world's largest investor in AI, showcasing Saudi Arabia's ambition to go beyond its oil-rich legacy.

The PIF has been in discussions with top venture capital firms, including one of Silicon Valley's largest venture capital firms— Andreessen Horowitz, to explore potential partnerships.

The focus of the fund will be on AI startups, chip makers, and the expansive data centers necessary for the next generation of computing. This strategic initiative reflects the global trend of significant investments in AI, which is reshaping industries and economies worldwide.

Notably, Andreessen Horowitz, known for its investments in successful companies like Airbnb and Facebook, has a significant number of AI-related startups in its portfolio. The collaboration with such a firm could provide the PIF with access to a wide range of innovative AI ventures and expertise.

The potential partnership with Andreessen Horowitz could accelerate the PIF's ambitions to become a leading investor in the AI space.

Saudi Arabia's Public Investment Fund (PIF) is the sovereign wealth fund of the Kingdom, established in 1971. It is one of the largest sovereign wealth funds globally, with total estimated assets of around $925 billion. The PIF plays a central role in Saudi Arabia's Vision 2030, which aims to diversify the economy away from oil and invest in various strategic sectors. The fund has been actively investing in both domestic and international ventures, including real estate, infrastructure, and technology, to stimulate economic growth and create jobs.

Of late, the PIF has made billions of dollars of investment into stake purchases and joint funds with major international companies like Uber, Bank of America, Citi, SoftBank and Blackstone.

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