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Saudi Arabia is forging ahead with its ambitious "Project Transcendence," which aims to establish the kingdom as a leading global hub for artificial intelligence (AI).

Bloomberg has reported that this initiative could see investments reaching up to $100 billion, aimed at bolstering the country's technological landscape by funding data centers, AI start-ups, and essential infrastructure.

The project is part of a broader strategy to foster a robust local tech ecosystem, attract international talent, and encourage global tech firms to set up operations in Saudi Arabia.

According to sources, "Project Transcendence" mirrors the structure of Alat, a fund backed by $100 billion from the Saudi Public Investment Fund (PIF), focused on sustainable manufacturing.

Crown Prince Mohammed bin Salman, signaling high-level governmental support, would chair this new AI-focused entity.

A key partnership within this initiative involves an AI hub developed in collaboration with Alphabet Inc.’s Google.

This partnership, with investments ranging from $5 billion to $10 billion, aims to advance general AI and create Arabic language AI models, laying the groundwork for broader AI efforts in the kingdom.

The project's scope includes forming alliances with major tech companies, where Saudi Arabia would provide infrastructure and capital. Discussions suggest that investments could scale from $50 billion to the full $100 billion, aiming to compete with AI leaders like the US and China.

This highlights Saudi Arabia’s ambition to establish an AI entity that could rival regional tech giants such as Abu Dhabi’s G42.

AI development is a cornerstone of Saudi Arabia’s Vision 2030 plan, which seeks to diversify the economy beyond oil.

The strategy includes becoming one of the top 15 countries in AI by enhancing domestic adoption and then exporting technology. The kingdom has already made strides by establishing research centers and creating large-language models similar to ChatGPT.

Despite facing economic challenges, such as scaling back the Neom project due to budget constraints, Saudi Arabia remains committed to AI.

Previous discussions involving partnerships, like the potential $40 billion fund with Andreessen Horowitz, underscore this commitment.