Capital Economy, Business and Finance
Saudi Arabia is planning a new artificial intelligence initiative with $100 billion from the kingdom’s Public Investment Fund.
Bloomberg says the project, named “Project Transcendence”, aims to narrow the AI gap between Saudi Arabia on the one hand and US and China on the other by investing in AI infrastructure and recruiting new talent.
AI underpins much of Saudi Arabia’s plan to diversify its economy away from reliance on fossil fuels but other major projects have been hampered by funding cutbacks due to budget deficits caused by low oil prices, labour shortages and supply challenges.
The kingdom recorded a deficit of $15.5 million in the nine months to 30 September, rising by $8 billion in the third quarter alone. Saudi Arabia’s finance minister Mohammed Al-Jadaan said last month some Vision 2030 plans were being re-worked to alleviate pressure on the economy.
Hopes of higher oil prices have been dampened by Trump’s re-election and his promises to scale up oil production in the US.
