Saudi Arabia invests billions in Arabic AI language models

Saudi Arabia is taking an ambitious leap into the global AI race with the launch of HUMAIN, a comprehensive artificial intelligence company backed by its sovereign wealth fund. This strategic move aims to establish the kingdom as a major AI hub by developing Arabic large language models and sovereign AI infrastructure, challenging Western and Chinese dominance in the sector. The initiative gains significance amid strengthening Saudi-US tech relations and coincides with Saudi Arabia’s aggressive expansion of data center capacity across the Middle East and North Africa region.

The big picture: Crown Prince Mohammed bin Salman has launched HUMAIN under the Public Investment Fund (PIF) to develop advanced AI technologies, next-generation data centers, cloud infrastructure, and powerful Arabic large language models.

• HUMAIN will span the entire AI value chain, creating innovative services and products for critical sectors including energy, healthcare, manufacturing, and financial services.
• The company aims to fast-track AI adoption across regional and global markets by optimizing data center projects, securing cutting-edge hardware, and fostering local innovation.

Why this matters: The emphasis on Arabic language LLMs and sovereign AI infrastructure represents a strategic pivot in a sector traditionally dominated by Western and Chinese companies.

• Beyond language capabilities, the initiative focuses on cultural context, regional control, and data sovereignty, creating a template for emerging markets to build locally-grounded AI systems.
• Saudi Arabia currently ranks as the global leader in government AI strategy according to the 2024 Global AI Index, providing a solid foundation for HUMAIN’s ambitious goals.

Industry reactions: Analysts view the launch as a significant step in Saudi Arabia’s broader technology and economic diversification strategy.

• “Saudi Arabia is making massive investments in the AI space, both via public and private sector initiatives, as it looks to diversify its economy,” said Marc Einstein, research director at Counterpoint Research.
• According to Manish Ranjan of IDC EMEA, the launch builds on the Middle East’s demonstrated leadership in AI innovation, as evidenced by the UAE’s National AI Strategy and prominent regional LLMs like Falcon and Jais.

Behind the numbers: The kingdom currently dominates Middle East data center capacity, with significant expansion underway to support its AI ambitions.

• Saudi Arabia accounts for nearly half of the data center capacity in the Middle East and North Africa, with over two gigawatts in development.
• Research and Markets projects approximately $12 billion in new data center investments in the region by 2027.

The geopolitical angle: HUMAIN’s launch coincides with strengthening Saudi-US technology relations that could accelerate the kingdom’s AI capabilities.

• The launch coincides with a high-profile Saudi-US investment forum in Riyadh attended by US President Donald Trump and executives from Alphabet, IBM, and Qualcomm.
• Reports suggest the Trump administration intends to ease restrictions on AI chip exports to Saudi Arabia and its allies, potentially providing a significant boost to the kingdom’s tech ambitions.

Financial backing: The PIF’s substantial resources create a strong foundation for sustained AI investment and development.

• Managing $940 billion in assets and projected to reach $2 trillion by 2030, the PIF has become a key partner for firms like Google in AI-related ventures.
• US tech giants are increasingly drawn to the Gulf region by advantages like cheap energy and land, with Salesforce planning a $500 million AI investment in Saudi Arabia.