Why the tech industry is eager to form alliances with Saudi Arabia

In a bustling Monday morning last month, a convoy of tech executives, engineers, and sales representatives from industry giants like Amazon, Google, and TikTok reportedly found themselves ensnared in a three-hour traffic snarl. Their destination: a colossal conference hosted at an expansive desert event space, situated 50 miles beyond Riyadh, Saudi Arabia.

According to a report in the New York Times, the irresistible allure for these tech giants is billions of dollars in Saudi investment, as the kingdom fervently aspires to construct a thriving tech ecosystem alongside its dominant oil industry.

Approaching the event, a sign proclaimed, “To the Future,” encapsulating the high stakes awaiting them.

Over 200,000 individuals converged at the conference, a diverse crowd that included luminaries such as Adam Selipsky, CEO of Amazon’s cloud computing division. Selipsky electrified the audience by announcing a staggering $5.3 billion investment in Saudi Arabia, earmarked for cutting-edge data centers and artificial intelligence technologies.

Arvind Krishna, IBM’s CEO, reportedly spoke of a “lifetime friendship” with the kingdom, emphasizing the symbiotic potential between tech innovation and Saudi vision. Meanwhile, executives from Huawei and numerous other firms delivered impassioned speeches, sealing deals that collectively surpassed $10 billion, as reported by Saudi Arabia’s state press agency.

The tech world, it seems, is vying for Saudi Arabia’s favor as the kingdom sets its sights on AI dominance, infusing jaw-dropping sums into the endeavor. Saudi Arabia’s ambitious plans, including a $100 billion fund dedicated to AI and emerging technologies, have the potential to reshape the global tech landscape. If successful, Saudi Arabia could emerge as a pivotal player in the global AI race, alongside neighboring United Arab Emirates.