Saudi Arabia’s $100B AI Fund will divest from China if US Asks

As a researcher with experience in international business and technology, I believe that Saudi Arabia’s decision to pull out of China or divest from Chinese technology depends largely on the pressure and incentives it receives from the United States. The ongoing discussions between US and Saudi Arabian officials regarding national security and technology partnerships indicate a clear shift towards prioritizing trusted and secure partnerships with the US.

As an analyst, I would rephrase it as follows: Amit Midha, CEO of Alat, a $100 billion investment firm backed by Saudi Arabia’s Public Investment Fund, stated that Riyadh could withdraw from its ties with China if pressured to do so by the United States.

Up to this point, the United States has asked for the maintenance of distinct manufacturing and supply chains. However, should collaborations with China pose an issue, Alat could consider withdrawing its $100B AI investment from China.

In the course of continued talks between US and Saudi Arabian authorities regarding national security matters, it has been communicated that Saudi Arabia must make a choice between utilizing American or Chinese technology for the growth of their semiconductor sector.

During an interview, Amit Midha expressed, “We aim to form reliable and secure collaborations in the US. The US holds the top position for us as our partner and the leading market for AI technology, chip manufacturing, and semiconductor industry.”

As a crypto investor, I’m keeping a close eye on Saudi Arabia’s tech ambitions. With plans to build data centers, develop artificial intelligence companies, and establish semiconductor manufacturing, they aim to take the lead in our region when it comes to advanced technology. It’s an exciting time for tech growth, and as an investor, I believe being part of this progress could yield significant returns.

As a researcher studying the dynamics of international relations, I’ve noticed that the objectives of Saudi Arabia are encountering obstacles due to heightened US scrutiny over the Middle East’s relationships with China. There are fears in the US that these connections could make the Middle Eastern countries act as intermediaries for Beijing, raising concerns about potential geopolitical implications.

The United Nations has implemented stricter regulations on exporting AI chips to China due to concerns that countries like Saudi Arabia and the United Arab Emirates could serve as intermediaries, enabling Beijing to acquire technology that US companies are denying access to Chinese firms directly.

The United States has put forth a condition for G42, an Abu Dhabi-based AI firm, to divest from Chinese technology in order to maintain access to American systems essential for their AI applications. This arrangement opened the door for Microsoft Corporation’s $1.5 billion investment in G42.

As a crypto investor following Midha’s latest update, I’m excited to hear that Alat is set to announce collaborations with two major US tech firms before the month’s end. Additionally, they will be teaming up with a renowned US investment firm for co-investment opportunities.

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2024-05-08 21:25