Aramco’s venture capital fund allocates $100 million for AI investments

(Bloomberg) — Saudi Aramco’s venture arm has earmarked $100 million to invest in artificial intelligence startups as it looks to accelerate Saudi Arabia’s push to become a more competitive force in global AI.

Wa’ed Ventures has appointed an advisory board made up of former employees from companies including Meta Platforms Inc. and Amazon.com Inc. to explore early-stage investments in the sector. Money will be deployed over the next three years, according to the company.

“This investment will not only incentivize local entrepreneurs but also support the localization of global talent,” Anas Algahtani, acting chief executive officer of Wa’ed, said in a statement on Sunday.

The $500 million VC arm of oil giant Aramco has been doubling down on AI this year as Saudi Arabia aims to turn itself into a top 15 country for artificial intelligence. The fund recently invested $15 million in South Korean chipmaker Rebellions Inc. and also joined funding rounds for AI platform aiXplain and Peter Thiel-backed firm Tenderd.

Saudi Arabia’s AI strategy is to spend this decade using data and AI to drive the economic diversification agenda known as Vision 2030 — and then start competing globally after 2030.

It has been competing with the UAE for AI investment, with both racing to set up expensive data centers to support the technology and become the regional tech superpower.