Once considered one of China’s strongest ally when it came to developing AI, CEO of Alat, Saudi Arabia’s new investment fund to develop semicon and AI, has revealed they are ready to divest from China if the US asks them to
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Amit Midha, CEO of Alat, Saudi Arabia’s new investment fund for semiconductor and artificial intelligence technology, stated that the country would divest from China if requested by the US.
Alat is an investment firm backed by $100 billion in capital from the Public Investment Fund.
Midha emphasized that while current requests focus on maintaining separate manufacturing and supply chains, Saudi Arabia would comply with US concerns and divest if partnerships with China posed issues.
Reports from Bloomberg indicate that US officials have informed their Saudi counterparts of the need to choose between Chinese and American technology in developing the Saudi semiconductor industry, as part of ongoing discussions on national security matters.
In an interview with Bloomberg News during the Milken Institute Global Conference in California, Midha reiterated Saudi Arabia’s pursuit of trusted and secure partnerships in the US. He emphasized the US as the primary partner and market for AI, chips, and semiconductor industries.
Saudi Arabia is actively competing for regional leadership in advanced technology, aiming to establish data centres, AI companies, and semiconductor manufacturing capabilities. This endeavour coincides with increasing US scrutiny of the Middle East’s connections to China, amid concerns that countries like Saudi Arabia and the United Arab Emirates could facilitate Beijing’s access to technology barred from purchase by Chinese firms in the US.
In a move reflecting this scrutiny, the US has urged Abu Dhabi-based AI firm G42 to divest from Chinese technology. In exchange, G42 would maintain access to US systems powering AI applications. This agreement facilitated a significant $1.5 billion investment by Microsoft in G42.
Meanwhile, Alat, the Saudi investment firm, is poised to announce partnerships with two US tech companies by the end of June. These partnerships will involve co-investment alongside a US investment firm, as revealed by Midha. Details regarding the companies involved or the focus areas of these collaborations have not been disclosed.
