Saudi Arabia Partners with Google Cloud to Establish AI Hub Near Dammam

Saudi Arabia’s Public Investment Fund (PIF) has announced a strategic partnership with Google Cloud to create a global artificial intelligence (AI) hub in the Eastern Region near Dammam. This landmark deal, signed during the 8th Future Investment Initiative (FII8), positions Saudi Arabia as a burgeoning global AI hub and a prime destination for enterprises and startups.

The collaboration aims to enhance the Saudi workforce by providing AI programs to millions of students and professionals, aligning with the national goal of increasing the information and communication technology (ICT) sector by 50%. Customers will be able to leverage Google Cloud’s technology to drive growth across various industries and improve the quality of AI applications and data services delivered locally with enhanced efficiency.

Pending regulatory approvals, the partnership will focus on joint research into Arabic language models and Saudi-specific AI applications. The AI hub will be supported by Google Cloud’s substantial investment in custom silicon, featuring advanced tensor processing units (TPUs) and graphics processing units (GPUs), along with the Vertex AI platform designed for developing generative AI applications.

PIF Governor Yasir Al Rumayyan expressed excitement about welcoming the Google Cloud AI hub to Saudi Arabia, emphasizing PIF’s commitment to creating an AI-friendly environment through investments in technology and human capital. He noted that Saudi Arabia’s strategic location at the crossroads of three continents, advanced infrastructure, and access to fast-growing Middle Eastern markets make it attractive for major tech initiatives.

Research by Access Partnership commissioned by Google Cloud estimates that the new AI hub could contribute approximately $71 billion to Saudi Arabia’s GDP over eight years, supporting the creation of thousands of highly skilled jobs.

The partnership will also enhance the Arabic-language capabilities of Google’s generative AI models, providing local businesses, researchers, and developers with the opportunity to incorporate advanced AI models into their systems, thereby creating sophisticated Arabic-language applications.

Ruth Porat, President and Chief Investment Officer of Alphabet and Google, highlighted the initiative’s potential to accelerate AI adoption across various industries, including healthcare, retail, and financial services, benefiting enterprises and startups in Saudi Arabia and beyond.

PIF continues to prioritize technology investments, supporting critical sectors of the economy, including entertainment, healthcare, and renewable energy, while enhancing its portfolio in telecommunications and digital services.

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