Why everybody in tech seems to 'want to make friends' with Saudi Arabia right now

In a bustling Monday morning last month, a convoy of tech executives, engineers, and sales representatives from industry giants like Amazon, Google, and TikTok reportedly found themselves ensnared in a three-hour traffic snarl. Their destination: a colossal conference hosted at an expansive desert event space, situated 50 miles beyond Riyadh, Saudi Arabia .

According to the report in New York Times, the irresistible allure is billions of dollars in Saudi investment, as the kingdom fervently aspires to construct a thriving tech ecosystem alongside its dominant oil industry.

“To the Future”
Approaching the event, a sign proclaimed, “To the Future,” encapsulating the high stakes awaiting them.

Over 200,000 individuals, as per New York Times report, converged at the conference, a diverse crowd that included luminaries such as Adam Selipsky, CEO of Amazon’s cloud computing division. Selipsky electrified the audience by announcing a staggering $5.3 billion investment in Saudi Arabia, earmarked for cutting-edge data centers and artificial intelligence technologies.

Arvind Krishna, IBM’s CEO, reportedly spoke of a “lifetime friendship” with the kingdom, emphasizing the symbiotic potential between tech innovation and Saudi vision. Meanwhile, executives from Huawei and numerous other firms delivered impassioned speeches, sealing deals that collectively surpassed $10 billion, as reported by Saudi Arabia’s state press agency.

“This is a great country,” declared Shou Chew, TikTok’s CEO, during the conference, as per New York Times. He celebrated the video app’s meteoric rise within the kingdom and hinted at even greater investments.

Setting sights on AI dominance
The tech world, it seems, is vying for Saudi Arabia’s favor. The kingdom has strategically set its sights on AI dominance, infusing jaw-dropping sums into the endeavor.

In 2024, Saudi Arabia established a colossal $100 billion fund dedicated to AI and emerging technologies. Simultaneously, it engages in discussions with Silicon Valley’s Andreessen Horowitz and other investors, aiming to inject an additional $40 billion into AI-focused ventures. Notably, the government pledged $1 billion for a Silicon Valley-inspired startup accelerator, enticing AI entrepreneurs to set up shop in the kingdom.

These initiatives dwarf most nation-state investments, including Britain’s $100 million commitment to the Alan Turing Institute.

The spending spree traces back to Crown Prince Mohammed bin Salman ’s visionary blueprint, unveiled in 2016 as “Vision 2030.” Saudi Arabia races to diversify its economy, channeling oil wealth into tech, tourism, culture, and sports. The reported $200 million annual investment in soccer superstar Cristiano Ronaldo and plans for a 100-mile-long mirrored skyscraper in the desert exemplify this ambition.

While Saudi Arabia has long been a funding source for tech ventures, it now pivots toward nurturing a homegrown tech industry. International firms seeking Saudi capital must establish roots within its borders.

If Crown Prince Mohammed’s audacious plan succeeds, Saudi Arabia could emerge as a pivotal player in the global AI race. The kingdom’s efforts, combined with neighboring United Arab Emirates’ AI initiatives, have the potential to forge a new epicenter in the tech landscape.