PIF and Google Cloud Partner to Establish AI Hub in Saudi Arabia, Boosting Jobs and Economy
RIYADH – October 30, 2024 – In a landmark partnership, Saudi Arabia’s Public Investment Fund (PIF) and Google Cloud have joined forces to create a global AI hub, strategically located near Dammam in the Eastern Province. Signed during the 8th Future Investment Initiative (FII8), this agreement marks a significant step towards positioning Saudi Arabia as a premier AI and technology destination for local and international businesses.
AI Hub to Transform the Saudi Economy
The ambitious AI hub is expected to drive economic growth in Saudi Arabia, generating approximately $71 billion in GDP over the next eight years. The initiative will also create thousands of high-skilled jobs across diverse sectors, supporting Saudi Vision 2030’s aim to develop the information and communications technology (ICT) sector by 50%.
State-of-the-Art Infrastructure and Localized AI Applications
The collaboration will leverage Google Cloud’s advanced AI technologies, including the latest tensor processing unit (TPU) and graphics processing unit (GPU) accelerators, as well as Google’s Vertex AI platform. This will enable faster deployment of AI solutions and applications in Saudi Arabia, allowing businesses and end-users to benefit from quicker, high-quality AI-powered data services.
This partnership will further advance Arabic-language AI applications, with joint research focusing on optimizing Google Cloud’s Gemini AI model for Arabic speakers. Enhanced by Google’s extensive AI infrastructure and Arabic data sources, local developers and researchers will have access to sophisticated Arabic AI tools tailored for the Saudi market.
Major Boost for Saudi Tech Ecosystem and Global Business
Highlighting Saudi Arabia’s strategic appeal, PIF Governor H.E. Yasir Al-Rumayyan remarked, “The new Google Cloud AI hub demonstrates PIF’s commitment to fostering a sustainable, AI-friendly environment. Through this partnership, we are investing in technology and human capital, enhancing our nation’s infrastructure to support cutting-edge AI applications.”
Ruth Porat, President and Chief Investment Officer of Alphabet and Google, expressed optimism about the partnership’s impact on regional and global enterprises, adding, “This partnership accelerates AI adoption across industries in Saudi Arabia and beyond, enabling job creation for Saudi talent and growth opportunities for global enterprises.”
Strengthening Arabic AI Models and Language Capabilities
With a commitment to advancing Arabic-language models, PIF and Google Cloud will expand the Gemini AI model’s Arabic language capabilities by integrating extensive Arabic datasets. Local businesses and researchers will be able to utilize these advanced tools, supporting growth in fields like healthcare, finance, retail, and more.
Strategic Investment for Regional Influence
Saudi Arabia’s advantageous position at the intersection of three continents, along with its commitment to renewable energy and advanced digital infrastructure, makes it a key destination for global tech investments. Google Cloud’s Dammam cloud region, part of its global network of 40 regions, and investments in the AI hub, will provide a high-performance base to serve the growing demand for AI and cloud services in Saudi Arabia and the Middle East.
By creating high-quality jobs, accelerating AI-driven digital transformation, and strengthening the Saudi technology sector, this partnership between PIF and Google Cloud signifies Saudi Arabia’s emergence as a pivotal player in the AI landscape. The project is anticipated to bolster the nation’s economy, support sustainable growth, and promote innovation, positioning Saudi Arabia as a leader in the global AI ecosystem.
