Saudi Arabia Launches $10B AI Venture Fund to Rival Global Tech Giants

Editorial Team

Last updated 28-05-2025

3 min

Saudi Arabia launches a USD 10 billion fund for global AI startups.

Humain seeks to develop advanced Arabic models and solid local AI infrastructure.

Legislation will ease compliance for data centres based in Saudi Arabia.

Subsidies for electricity are offered to encourage tech giants' relocation.

Humain's initiative aligns with Vision 2030's economic diversification strategy.

Saudi Arabia is making headlines yet again, this time with its ambitious AI initiative, Humain, rolling out plans to launch a whopping USD 10 billion venture capital fund. This latest venture, scheduled to kick off this summer, aims to place strategic bets on promising startups across the US, Europe, and Asia, seriously ramping up Saudi influence in the global AI space.

The brains behind this operation, backed by Saudi Arabia's sovereign wealth giant, the Public Investment Fund (PIF), haven't been shy about their ambitions. Humain's Chief Executive Tareq Amin recently revealed to the Financial Times they're currently holding discussions with heavy-hitters from America's tech scene, mentioning high-profile outfits such as OpenAI, Elon Musk's brainchild xAI, and esteemed VC firm Andreessen Horowitz.

What's particularly interesting about Humain, aside from the sheer size of the funding pot, is its dedication to developing advanced Arabic language models and creating robust local AI infrastructure. There's a clear and deliberate push by Saudi Arabia to transform itself into a major global AI hub, in alignment with the country's broader Vision 2030 economic diversification strategy.

To sweeten the deal further for overseas tech giants, Saudi Arabia plans to introduce legislation that would smooth over potential compliance headaches. Essentially, data centres based in Saudi could adhere to the online regulations of their tenant companies' home countries, soothing nerves regarding data sovereignty and legal compliance concerns. And just to sprinkle on some extra financial icing, considerable subsidies for electricity are also on the cards for the data centre providers making the leap to Saudi.

On a lighter note, it's the sort of bold move that makes you wonder if the kingdom is lining itself up as the tech equivalent of Manchester City—suddenly appearing centre-stage, jostling with long-established power players and shaking things up on a global scale. But joking aside, the scale and seriousness behind Humain's grand entrance shouldn’t be dismissed lightly.

AI is obviously the hot potato of the moment, and countries all over the globe are scrambling to get a pieece of the action. Initiatives like the one Humain is proposing could position Saudi Arabia firmly amongst the frontrunners of this future-focused race, appealing directly to international firms hunting for alternative locations with benefits and fewer regulatory headaches.

With summer just around the corner, Arageek readers should definitely keep their eye on this one. The impact of this venture fund on the international tech scene as well as the regional economy could be substantial, marking another decisive step forward for Saudi Arabia's ambitious drive towards digital and economic diversification goals.

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