Leap 2025 kicked off with new tech investments and strategic partnerships to the tune of USD 14.9 bn, including USD 10.9 bn of investments in infrastructure, AI projects, and startup funding rounds, the Ministry of Communications and IT said in a post on X.

The big ticket: PIF tech arm Alat and China’s PC maker Lenovo broke ground on a 200k-sqm manufacturing hub in Riyadh’s Special Integrated Logistics Zone (SILZ), according to a press release. The new clean energy-powered facility is set to begin operations next year to manufacture mns of Saudi-made laptops, desktops, and servers. Lenovo is also gearing up to establish its regional MEA headquarters, in addition to opening more retail spaces and expanding R&D capacities, the statement read.

REMEMBER- Alat closed a USD 2 bn investment in Lenovo last month, which saw Alat buy three-year zero-coupon convertible bonds, potentially granting Alat a 12% equity stake in Lenovo if converted at their purchasing price of HKD 10.42 per share.

More big investments unveiled: Groq and Aramco Digital are investing USD 1.5 bn to launch the world’s largest AI inference node in Saudi Arabia, while Salesforce is allocating USD 500 mn to develop a Hyperforce platform to serve regional clients. Databricks put up USD 300 mn to develop full PaaS services that enable app developers to increase innovation. Tencent Cloud also committed USD 150 mn to launch the Middle East's first AI-supported cloud region in Saudi Arabia. Meanwhile, SambaNova is investing USD 140 mn to bolster AI infrastructure and roll out a large language model.

Day 1 highlights also include:

  • HP is investing an undisclosed amount to establish a manufacturing hub in Riyadh and an AI and R&D center in Dhahran;
  • Cisco is also investing an undisclosed amount towards setting up cloud services data centres, developing AI skills, and kicking off a “phased plan” for local manufacturing;
  • KKR and Gulf Data Hub partnered to develop data centers with 300 MW capacity;
  • Homegrown AI startup Allam is introducing its language model to the Qualcomm AI Cloud, alongside other cloud-based AI solutions from Allam;
  • Alibaba Cloud launched its Qwen LLM and Platform for AI (PAI) on the Kingdom’s public cloud, while also kicking off an AI Empowerment Program;
  • King Abdullah Financial District (Kafd) and Huawei inked an MoU to partner on smart city applications and advanced technologies.

REMEMBER- The Kingdom has big AI ambitions: The domestic AI market is expected to contribute 12% to GDP by 2030, the Saudi Data and Artificial Intelligence Authority (SDAIA) said in a September report. The Kingdom is also reportedly planning a USD 100 bn AI project, dubbed Project Transcendence. Meanwhile, the Public Investment Fund is looking to set up a USD 40 bn AI-focused fund that would make it the world’s largest investor in artificial intelligence.

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