Saudi Arabia will pull out of China if the United States asks it to, according to Amit Midha, the chief executive officer of Alat, an investment firm backed by $100 billion in capital from the Public Investment Fund.
So far the requests from the US have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem Alat may divest its $100B AI fund from China.
As part of ongoing discussions on a range of national security, US officials have told their Saudi Arabian counterparts that they will have to decide between American and Chinese technology, in order to develop the Saudi semiconductor industry.
In an interview, Amit Midha said, “We are seeking trusted, secure partnerships in the US. The US is the number one partner for us and the number one market for AI, chips and semiconductor industry.”
In an effort to establish data centers, artificial intelligence firms, and semiconductor manufacturing, Saudi Arabia is competing to become the leader in the region for advanced technology.
Saudis’ goals face hindrances as they coincide with the US’s growing scrutiny of the Middle East’s connections with China due to concerns that it may act as a middleman for Beijing.
United Nations has tightened restrictions on AI chip exports to China it fears that allowing countries such as Saudi Arabia and the United Arab Emirates may act as a backdoor for Beijing to access technology that US companies are preventing Chinese companies from purchasing.
US has also requested that G42, an AI company based in Abu Dhabi, remove its investments in Chinese technology in return for continuing access to US systems that support AI apps. That agreement paved the way for Microsoft Corp. to invest $1.5 billion in G42.
Midha also revealed that Alat will announce partnerships with two US tech companies by the end of June and will co-invest alongside a US investment firm.
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