In partnership with global tech leaders, the Kingdom of Saudi Arabia prepares the fertile ground for local AI development, dedicating almost $15 billion to advanced AI-powered projects.
On Feb. 9, at a tech conference LEAP 2025 in Riyadh, Saudi Minister of Communications and Information Technology Abdullah bin Amer Alswaha revealed that the country attracted $14.9 billion in investments in the combination of AI and other emerging technologies, including the cloud.
The solid investment reinforces Saudi Arabia’s position as not only a major regional but also a globally significant hub for digital transformation. The country’s government collaborates with leading tech partners, including Google Cloud, Lenovo, Alibaba Cloud, Qualcomm, Groq and Salesforce. One of the major providers of data storage capacity and data center power is a state-owned energy company Saudi Aramco. It hosts a range of supercomputers, including Dammam 7, one of the fastest models in the region, and several NVIDIA Superpods.
The local energy and tech giant is the seventh-largest company globally in terms of market capitalization. Aramco has recently partnered with Groq, signing a $1.5 billion deal to build AI-powered cloud computing capabilities and deliver the first AI inferencing center in the region. The company also intends to sign agreements with other AI companies to develop its tech potential. One of its latest innovations is aramcoMETABRAIN, the world’s first industrial Large Language Model.
Other components of Saudi Arabia’s ambitious AI expansion include a $2 billion partnership between Saudi manufacturing giant Alat and Lenovo. The partners want to establish a cutting-edge AI and robotics-based manufacturing and tech facility within the country. As part of this deal, Lenovo will also set up a regional headquarters in Riyadh, further strengthening its presence in the Middle East.
Several other global tech giants are also joining the effort to accelerate AI innovation in Saudi Arabia. Thus, Google, Qualcomm, and Alibaba Cloud are launching localized AI initiatives; Salesforce is investing $500 million to expand its AI-driven services; Databricks is committing $300 million to data and AI infrastructure projects; Tencent Cloud is making a $150 million investment in cloud and AI solutions; while SambaNova is contributing $140 million towards AI advancements.
This massive influx of funding and technology expertise aligns with Saudi Arabia’s Vision 2030 plan, which focuses on economic diversification through technological and digital innovation. The plan illustrates the Kingdom’s intentions to become a major player in the global tech industry, create numerous job opportunities, nurture local IT talent, and welcome international companies to operate within its borders.
Earlier examples of Saudi Arabia’s growing AI ambitions include “Project Transcendence,” a $100 billion initiative focused on developing state-of-the-art data centers, supporting startups, and expanding AI infrastructure, as well as partnership with Alphabet’s Google. In collaboration with Saudi Arabia’s Public Investment Fund (PIF), Google is investing between $5 billion and $10 billion in AI-focused projects, such as the development of Arabic-language LLMs. General Catalyst, a Silicon Valley venture capital company, also made its first investment in Saudi Arabia last year, a vote of confidence in the growth trajectory of Saudi Arabia and its tech hub potential.
