Saudi Arabia’s Tech Dilemma: Choosing Between Chinese or American Partnerships

Saudi AI Fund Will Divest from China upon U.S. Request

According to reports from Bloomberg, Saudi Arabia is considering divesting from Chinese technology if requested to do so by the US. This decision comes after ongoing discussions surrounding various national security issues have outlined the need for the country to choose between Chinese and American technology as they work towards developing their semiconductor industry.

Amit Midha, the chief executive officer of Alat, an investment firm backed by $100 billion in capital from the Public Investment Fund, has emphasized seeking trusted, secure partnerships in the US. He stated that the US is the top partner and market for AI, chips, and the semiconductor industry.

Saudi Arabia aims to establish regional leadership in advanced technology by building data centers, AI companies, and semiconductor manufacturing facilities. However, concerns have arisen that countries like Saudi Arabia and the United Arab Emirates could potentially provide China with access to technology that their firms are restricted from purchasing from the US.

In response to these concerns, the US has already requested Abu Dhabi-based AI firm G42 to divest from Chinese technology in order to maintain access to US systems powering AI applications. This decision enabled a $1.5 billion investment from Microsoft Corp. into G42. Midha mentioned that Alat will announce collaborations with two US tech companies by the end of June. The investment firm will co-invest alongside a US investment company, although no details regarding

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