Amazon Bets Big on AI Development in Saudi Arabia

Amazon Partners with Humain for $5 Billion AI Zone in Saudi Arabia

Amazon has announced an ambitious strategic partnership with Humain, a newly launched AI company backed by Saudi Arabia’s Crown Prince Mohammed bin Salman. This collaboration is set to invest over $5 billion into developing an “AI Zone” in Saudi Arabia, a move that signifies a significant shift in the Middle Eastern tech landscape.

What the AI Zone Will Include

The AI Zone aims to optimize Amazon Web Services (AWS) capabilities in the region, featuring dedicated infrastructure, advanced servers, and robust networks. According to a press release, the project will also focus on training and certification programs to nurture local talent and spur innovation in artificial intelligence. Humain is committed to utilizing AWS technologies to create tailored AI solutions, which include providing essential tools and support to Saudi-based AI startups. This development aligns with Saudi Arabia’s Vision 2030 initiative, targeting technological diversification and economic transformation.

Expanding Collaborations With Global Tech Giants

Humain’s partnership with Amazon marks a broader trend, with tech giants like Nvidia and AMD also aligning with the Saudi government through the Public Investment Fund (PIF). Companies such as Google and Salesforce have also engaged in recent projects leveraging funding from the PIF, which has become an attractive source of capital for American tech firms looking to expand their influence in the region.

A New Era for Investment in Technology

This announcement comes in the wake of a U.S.-Saudi investment forum attended by former U.S. President Donald Trump and various industry allies. Under a fresh initiative by the Trump administration, American technology suppliers, including Nvidia and AMD, have received the green light to negotiate deals with Saudi firms. This could serve as a stepping stone for wider investment and collaboration in the region.

Saudi Arabia has also mandated that AI services and companies store their data locally, compelling vendors to construct facilities within the kingdom to retain contracts. As a result, both Google and Oracle have designated plans for expansion in the Saudi market, responding to the increasing demand for local services and compliance.

Amazon’s Investment in Saudi Data Centers

Earlier this year, Amazon committed to investing billions in data centers across Saudi Arabia. Their recent announcement of a $5.3 billion investment plan for developing an AWS region in the country is scheduled for completion in 2026. It’s essential to note that the commitments made towards the AI Zone come in addition to the initial $5.3 billion investment. Still, Amazon has not clarified whether the funds allocated for the AI Zone will come from this initial capital.

Looking Ahead

The establishment of the AI Zone underscores a pivotal moment for both Amazon and Saudi Arabia in the rapidly evolving landscape of artificial intelligence. As the partnership unfolds, tech enthusiasts and investors alike will be eager to see how this collaboration shapes the future of AI in the Gulf region.

TechCrunch has reached out to Amazon for further insights and clarity on this landmark agreement and will provide updates as information becomes available.

For more information on developments in the tech industry, check out our pieces on Nvidia, Oracle, and other global tech trends.

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