The CEO of Saudi Arabia’s new investment fund for semiconductor and artificial intelligence technology, Amit Midha, has stated that the country would divest from China if requested by the US. This announcement comes after reports by Bloomberg revealed that US officials have advised Saudi Arabian counterparts to choose between Chinese and American technology as they work to develop the Saudi Arabian semiconductor industry.
According to Midha, while the current requests have been to keep manufacturing and supply chains separate, they would divest if partnerships with China became an issue for the US. Alat is backed by $100 billion in capital from the Public Investment Fund.
Midha expressed that the US is the number one partner and market for the AI, chips, and semiconductor industry. He emphasized that trusted and secure partnerships are essential in national security issues.
Saudi Arabia aims to establish itself as a leader in advanced technology within the region, with plans to create data centers, AI companies, and semiconductor manufacturing facilities. However, concerns have arisen in the US about Middle Eastern countries’ connections to China. There are worries that countries like Saudi Arabia and UAE could provide Beijing with access to technology that Chinese firms are restricted from acquiring in the US.
To address these concerns, the US has asked AI firm G42 based in Abu Dhabi to divest from Chinese technology in order to maintain access to US systems powering AI applications. This agreement led to a significant $1.5 billion investment by Microsoft Corp in G42. Alat is planning to announce partnerships with two US tech companies by the end of June and will co-invest alongside a US investment firm. However, Midha did not disclose the names of the companies involved in these discussions or specify whether they are focused on AI or chips alone or a combination of both.