Scale AI, a San Francisco-based startup backed by Amazon, is set to open a new office in Riyadh by the end of the year as part of its broader expansion into the Middle East. The company also plans to establish a presence in the United Arab Emirates, although the timeline for this move remains unconfirmed.
Trevor Thompson, Scale AI’s global managing director, highlighted the Gulf region as one of the fastest-growing areas for AI adoption outside of the US and China. Gulf states, particularly Saudi Arabia, have made significant investments in technology startups, data centers, and computing infrastructure, encouraging international companies to set up local operations and create jobs in the region. For instance, Salesforce has begun hiring for a $500 million investment in Saudi Arabia.
Founded in 2016, Scale AI provides essential data-labeling services to train AI models and relies on a large network of contract workers. Its clients include industry leaders such as OpenAI and Microsoft. Following a $1 billion funding round from Amazon, Meta, and others, Scale AI reached a valuation of $13.8 billion last year. In 2024, the company generated around $870 million in revenue and is reportedly in talks that could significantly increase its valuation.
In addition to its expansion into Saudi Arabia, Scale AI is strengthening regional ties, including a five-year agreement signed in February with Qatar to enhance public services. The company also formed a partnership with Abu Dhabi-based Inception in March.
This announcement comes amid former President Donald Trump’s upcoming visit to Saudi Arabia, during which his team is considering lifting export controls on advanced AI chips, potentially increasing the Gulf region’s access to cutting-edge technology. Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech-related matters.
