Saudi Crown Prince Mohammed bin Salman has allocated an unprecedented $100 billion from the Saudi Public Investment Fund (PIF) to launch a new artificial intelligence (AI) initiative. While this massive investment is aimed at establishing Saudi Arabia as a regional leader in AI and competing with nations like the UAE, critics argue that the project prioritizes image building and political control over genuine progress.
AI Spending Amid Growing Budget Deficits
The announcement comes at a time when Saudi Arabia is grappling with rising budget deficits and economic inequality. Recent reports reveal that $20 billion has already been allocated to the Saudi Data and AI Authority (SDAIA) to develop AI capabilities, with $6 billion spent last year alone. However, these initiatives have yielded little visible benefit for Saudi citizens, many of whom face increasing poverty and unemployment.
Critics also point out that the Crown Prince’s AI ambitions are less about technological advancement and more about consolidating power. Reports indicate that AI tools are being deployed primarily for surveillance and monitoring dissent rather than for societal or economic improvements.
Rejected by Global AI Leaders
Saudi Arabia’s global AI ambitions hit a roadblock when Anthropic, a major AI firm backed by Amazon, rejected a $4 billion investment offer from the PIF. The firm cited national security concerns and Saudi Arabia’s poor human rights record as key reasons for the rejection. This is part of a growing trend among U.S. companies, which are wary of collaborating with Saudi Arabia due to fears of enabling censorship and authoritarian practices.
Following these setbacks, Saudi Arabia has reportedly turned to China for AI partnerships. While these collaborations may bypass Western scrutiny, experts argue they are politically driven rather than economically strategic.
Spending on Failing Ventures
The Crown Prince’s investments extend beyond AI, often targeting struggling foreign entities. For example, the PIF increased its stake in Selfridges, a financially troubled British retailer, despite its poor performance. Critics view such investments as emblematic of Bin Salman’s reckless spending, which prioritizes prestige projects over the needs of ordinary Saudis.
AI for Control, Not Innovation
Sources reveal that Bin Salman’s AI strategy is focused on using advanced technologies to monitor political opponents and control online narratives. This aligns with his broader efforts to suppress dissent while projecting an image of modernity and progress on the global stage.
A Nation in Need
As Saudi Arabia pours billions into AI and foreign ventures, citizens continue to grapple with rising inflation, unemployment, and inadequate public services. Critics argue that these funds would be better spent on infrastructure, healthcare, and social programs to address the country’s pressing needs.
While the $100 billion AI initiative may appear to position Saudi Arabia as a global tech leader, its underlying purpose and impact are under scrutiny. With international companies rejecting partnerships and domestic inequalities widening, Bin Salman’s AI ambitions raise serious questions about the priorities of the Saudi leadership.
