The state-backed project, code-named “Project Transcendence,” aims to build a comprehensive AI ecosystem encompassing data centers, startup investments, and talent recruitment, people familiar with the plans told Bloomberg. The effort would mirror the structure of Saudi Arabia’s US$100 billion Afaq sustainable manufacturing fund, with direct involvement from Crown Prince Mohammed bin Salman.
The sweeping initiative highlights Saudi Arabia’s growing technological ambitions as part of its broader Vision 2030 economic diversification strategy. It would build on existing AI research centers and the kingdom’s development of large language models similar to OpenAI’s ChatGPT.
Project Transcendence could potentially involve investments of US$50 billion to US$100 billion, the people said, with a focus on partnering with major tech companies to develop Arabic-language AI capabilities and other applications. The project may eventually encompass multiple government entities in an effort to close the kingdom’s AI expertise gap with the US and China.
Saudi officials have indicated they want the new AI entity to become a national champion on par with Abu Dhabi’s prominent G42 tech conglomerate, the people said. However, the ambitious plans come as Saudi Arabia’s giga-project Neom faces funding cutbacks amid projected budget deficits.
While details remain unclear, Project Transcendence represents Saudi Arabia’s latest bid to leverage its substantial financial resources to accelerate the kingdom’s technological capabilities and diversify its economy beyond oil and gas. The outcome could reshape the regional tech landscape for years to come.
