Saudi Arabia is launching a $100 billion initiative called 'Project Transcendence' aimed at establishing a competitive artificial intelligence (AI) hub, challenging the UAE's technological dominance.
Backed by the Public Investment Fund (PIF), the project will focus on investments in data centers, startups, and infrastructure, while also attracting talent and forming partnerships with major tech companies. The goal is to develop an AI ecosystem that bolsters local growth and enhances the nation's global standing.
As part of its Vision 2030, Saudi Arabia aims to become a leader in AI by 2030, reducing its reliance on oil. However, uncertainties remain regarding funding, especially as other large-scale projects like Neom face budget cuts. The initiative may involve collaborations with international firms and is a response to increasing tech competition with the US and China.
If successful, Project Transcendence could position Saudi Arabia as a key player in AI, comparable to Abu Dhabi's G42 initiatives.
In a related development, Google has announced a new AI center near Dammam, in eastern Saudi Arabia. This collaboration with the PIF aims to solidify the country's status as a global AI hub, attracting both local and international businesses.
The center will focus on joint research in Arabic language models and AI applications tailored to the Saudi context, equipped with the latest tensor processing units (TPUs) and graphics processing units (GPUs), along with Google's Vertex AI platform.
A preliminary analysis by Access Partnership estimates that this hub could contribute $71 billion to Saudi Arabia's GDP over the next eight years, creating thousands of high-skilled jobs. Despite this, environmental groups have criticized the project, highlighting the contradiction between Google's sustainability commitments and its partnership with a fossil fuel-dependent nation.
Nonetheless, Google asserts that the project will aid in the economic diversification of Saudi Arabia and promote the adoption of AI technologies across various sectors, including healthcare, retail, and finance.