Saturday, February 22, 2025

Saudi Arabia Invests $15 Billion in AI Amid Expert Discussion on Future Directions

The past two years in artificial intelligence have played out like a scene from a science fiction movie. It’s clear now that we need to push forward into the next phase: agentic AI, which operates quietly in the background, working for us without getting in the way. Yet, there’s a flip side; AI has the potential to compromise our autonomy, even allowing the possibility of cloning our identities and personalities.

At this week’s Leap 2025 tech show in Riyadh, Saudi Arabia, these views emerged amid a significant announcement of nearly $15 billion in planned AI investments. This move aligns with Saudi Arabia’s Vision 2030, which aims to shift the nation away from its heavy reliance on oil revenues.

Saudi Arabia is making substantial investments in IT, data centers, and especially AI. The conference schedule buzzed with discussions about AI applications and the future, particularly agentic AI. Among the highlights was a $1.5 billion partnership between Groq, an AI infrastructure provider, and Aramco Digital, a subsidiary of the state oil giant, to enhance AI-driven inference infrastructure and cloud computing capabilities. Additionally, a partnership between ALAT, a state-owned manufacturing conglomerate, and Lenovo saw a commitment of $2 billion toward establishing a manufacturing and technology center focused on AI and robotics.

Several major tech developments also took the spotlight. Google introduced new AI-powered digital infrastructure and launched a computing cluster, while Qualcomm announced its ALLAM Arabic large language model available on Qualcomm AI Cloud. Since 2022, Saudi Arabia has funneled $42.4 billion into tech-related infrastructure.

Various firms have made significant commitments: Databricks invested $300 million in an integrated platform for AI developers; SambaNova allocated $140 million for advanced AI infrastructure; Salesforce committed $500 million to enhance cloud capabilities with its Hyperforce; and Tencent Cloud set aside $150 million for the Middle East’s first AI-powered cloud region.

With generative AI, notably represented by ChatGPT, gaining traction, a central theme at the event was the future of AI and its implications for humanity. Agentic AI stands out as a key next step, shifting the focus from AI as a tool we actively seek to something that seamlessly integrates into our daily lives.

Yaser Al-Onaizan, CEO of the National Center for AI at the Saudi Data and AI Authority (SDAIA), shared this vision. He emphasized that “AI should be in everything we do,” but it should operate invisibly, listening, understanding, and acting based on our preferences—like booking flights or making hotel reservations on our behalf.

However, not everyone at the event saw only the bright side of AI. Lambert Hogenhout, chief of data at the United Nations, highlighted the productivity potential but cautioned against the risks to our autonomy, particularly concerning fraud and identity issues. He stressed the importance of AI fostering genuine human connections, warning that a society where many people feel excluded could lead to significant problems.

Discussions also revolved around leveraging AI for business value. Aiden Gomez, CEO of Cohere, pointed out that generative models are akin to CPUs—they offer flexibility across various industries but require a skilled developer to build something valuable on top of that technology.