S. Arabia’s AI fund open to divest from China at US request

The head of Saudi Arabia’s new $100 billion tech investment fund, Alat, signaled a willingness to divest China if pressured by the US, said CEO of Alat Amit Midha in a Bloomberg interview on Wednesday.

This statement comes amidst ongoing talks between the US and Saudi Arabia regarding national security and technology development.

US officials reportedly want Saudi Arabia to choose between American and Chinese tech partners, particularly for its burgeoning semiconductor industry.

“The US is the number one partner for us and the number one market for AI, chips and semiconductor industry,” Midha explained. “We seek trusted, secure partnerships,” and the US fits that bill perfectly, he added.

This aligns with Saudi Arabia’s ambitions to become a regional leader in advanced technology. They aim to establish data centres, AI firms, and domestic semiconductor production.

However, the US expresses concerns that Saudi Arabia, along with other Middle Eastern nations, could become backdoors for China to access restricted technology.

The US previously requested similar divestment from Abu Dhabi-based AI firm G42. In exchange for severing ties with Chinese tech, G42 secured a $1.5 billion investment from Microsoft and continued access to crucial US AI systems.

Midha confirmed Alat will announce partnerships with two US tech companies by June, alongside a co-investment with a US firm. He remained tight-lipped on specific names or the focus of these partnerships (AI, chips, or both).

This news highlights the growing tension between the US and China in the tech sphere, with countries like Saudi Arabia caught in the middle.