Saudi Arabia’s Alat Investment Fund, backed by $100 billion from the Public Investment Fund, has made a pivotal decision in the Chinese-AmeriTech rift. Amit Midha, the CEO of Alat, stated that they would divest from China if asked to do so by the US. He mentioned that while the current requests have been to keep manufacturing and supply chains separate, if partnerships with China become problematic for the US, Saudi Arabia will divest.
This decision comes amidst ongoing talks between US and Saudi officials about national security issues, including the development of the Saudi Arabian semiconductor industry. US authorities have reportedly urged Saudi Arabia to choose between Chinese and American technology. Saudi Arabia, aiming for regional leadership in advanced technology, plans to establish data centers, AI companies, and semiconductor manufacturing capabilities.
Amit Midha emphasized the importance of trusted and secure partnerships with the US, noting that the US is their number one partner and market for AI, chips, and the semiconductor industry. It is crucial for Saudi Arabia to align itself with the US in order to further develop its technological ambitions and foster strong relationships.
The US has become increasingly cautious about the Middle East’s connections with China, particularly concerned that countries like Saudi Arabia and the United Arab Emirates could provide avenues for China to access technology that Chinese companies are forbidden from purchasing in the US. In fact, Abu Dhabi-based AI firm G42 was required to divest from Chinese technology in exchange for continued access to US systems that power AI applications. This agreement led to a $1.5 billion investment in G42 by Microsoft Corp.
Looking to solidify their position in the US tech industry, Alat will announce partnerships with two American tech companies by the end of June. Moreover, they will collaborate with a US investment firm on these ventures. Although further details about the partnerships and their specific focus on AI, chips, or a combination of the two remain unknown, the goal is clear: Saudi Arabia wants to forge strategic relationships that will propel its technological aspirations.
As Saudi Arabia takes steps toward becoming a key player in the semiconductor and AI technology field, the decisions it makes regarding its alliances with China and the US will have far-reaching implications. It is also noteworthy to observe the shifting dynamics in the Middle East, with countries like Saudi Arabia and the UAE potentially reorienting their technological partnerships in response to US concerns. The narrative of this development will certainly unfold in the coming months as Saudi Arabia continues to navigate its position in the global technology landscape.
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