Saudi Arabia would divest from China if the US asked as such, said the head of the country’s investment fund for semiconductor and AI technology.
Saudi Arabia’s AI fund will withdraw from China
Until now, the American requests have been for keeping supply chains and manufacturing completely segregated, but if the collaboration with China becomes an issue for the US, we will divest, said Amit Midha, the CEO of Alat, which is an investment firm and is backed by the Public Investment Fund with a capital of $100 billion.
It is being said that the US is building the Saudi Arabian semiconductor industry, and its officials have already told the Saudis that they need to make a clear choice between American and Chinese technology during dialogue on national securities challenges, according to Bloomberg.
Around the Milken Institute Conference in California, Midha said,
“We are seeking trusted, secure partnerships in the US.”
He also highlighted that.
“The U.S. is the number one partner for us and the number one market for the chip and semiconductor industry.”
Source: Bloomberg.
Saudi Arabia at the moment is focusing on a leadership role in cutting-edge technology within the region by constructing data centers, developing artificial intelligence companies, and manufacturing silicon chips.
The US is tightening its scrutiny of the region
Back in November last year, the Biden administration forced Saudi Arabia-based Aramco to sell its stake in an AI chip startup that was also funded by Sam Altman, the CEO of OpenAI. The Silicon Valley startup called Neuromorphics is developing chips that will work in a way that the human brain works.
A US agency that acts as a watchdog for deals that affect national security asked Saudi Aramco Prosperity 7 to withdraw from the deal. Aramco was a lead investor in the startup’s $25 million funding round.
The current scenario has also emerged from the steps that the US is taking to increase scrutiny over the Middle East and China ties, as it thinks that China may use Arab countries as channels to get its hands on US technology that it has banned from selling to China.
Abu Dhabi-based G42 Investment Group also came under US radar for its partnership with Chinese counterparts, and America offered to withdraw from China and, in return, have access to Western technology, especially US AI technology. It is said that Microsoft’s $1.5 billion investment in G42 was a result of obliging the US.