{"id":84642,"date":"2024-03-24T00:00:00","date_gmt":"2024-03-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/03\/24\/the-battle-for-ai-talent-is-heating-up-and-anthropic-may-not-want-to-take-saudi-money\/"},"modified":"2024-03-24T00:00:00","modified_gmt":"2024-03-24T00:00:00","slug":"the-battle-for-ai-talent-is-heating-up-and-anthropic-may-not-want-to-take-saudi-money","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/03\/24\/the-battle-for-ai-talent-is-heating-up-and-anthropic-may-not-want-to-take-saudi-money\/","title":{"rendered":"The battle for AI talent is heating up \u2014 and Anthropic may not want to take Saudi money"},"content":{"rendered":"

Good morning, wonderful people.<\/strong>We have a pleasantly quick read for you as we close in on the halfway mark for Ramadan. We suggest you read this morning\u2019s issue while mulling whether to work from home given the weather overnight and what\u2019s in the forecast. More on that below. <\/p>\n

<\/a> BUT FIRST, a sign of the times? <\/strong>The Public Investment Fund may be out of the running for part of a USD 1 bn stake in Anthropic, the hot artificial intelligence startup that\u2019s being sold as part of crypto exchange FTX\u2019s bankruptcy proceedings. (FTX is the failed exchanged founded by Sam Bankman-Fried<\/a>.)<\/p>\n

What gives? <\/strong>CNBC<\/a> cites unnamed sources as claim that the company has \u201cruled out taking money\u201d from Saudi sources, citing \u201cnational security concerns,\u201d but aren\u2019t ruling out an investment by the UAE\u2019s Mubadala. <\/p>\n

In context: <\/strong>The report comes as Western governments are becoming more prone to giving a second glance at offshore investment in key sectors including AI, media, and technology. Other high-profile examples included the UK\u2019s bid to ban foreign media ownership<\/a> after a bid by UAE-backed RedBird IMI for the Telegraph and a bid in Washington to force the sale of Tiktok<\/a>.<\/p>\n

Saudi\u2019s planned USD 40 bn push into AI will be one of the big themes globally in the <\/strong>industry. <\/strong><\/p>\n

Want to go deeper?<\/strong> Check out The Middle East\u2019s AI dream depends on luring brainpower<\/a> by Karen Kwok for Reuters Breakingviews. Also worth a read: How Big Tech is winning the AI talent war<\/a> in the Financial Times, which notes that Saudi is already a net importer of AI talent.<\/p>\n

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PSAs- <\/p>\n

<\/a> #1- WEATHER- Brace yourselves for some intense weather on the horizon. <\/strong>The forecast has thunderstorms, powerful winds carrying dust, and a chance of hail continuing throughout the day. We could see flooding in some parts of Riyadh, Asir, Al-Baha, Makkah Al-Mukarramah, and the Eastern Province, Qassim, Najran, and Jazan.<\/p>\n

PSA- <\/strong>Schools<\/a><\/strong> and most <\/strong>universities<\/a><\/strong> are closed <\/strong>in cities from Riyadh to Dammam. <\/p>\n

So, when do we eat? <\/strong>Maghrib prayers are at 6:07 pm in the capital city, and you\u2019ll have until 4:32 am tomorrow to hydrate and caffeinate ahead of fajr. It\u2019s day 13 of Ramadan.<\/p>\n

<\/a> #2- <\/strong>You may now make Eid plans: <\/strong>Businesses and nonprofit organizations will be off for Eid Al Fitr holiday from Tuesday, 9 April through Friday, 13 April<\/a>, the Human Resources and Social Development Ministry said in a LinkedIn post. <\/p>\n

Banks and the stock market <\/strong>will be closed from Friday, 5 April, through Saturday, 13 April<\/a>. They will also be off from 14-22 June for the Eid Al Adha holiday.<\/p>\n

#3- You can still vote on proposed changes to the labor law through the <\/strong>Istitlaa platform<\/a> <\/font><\/strong>until Saturday, 20 April<\/strong>. The draft changes (pdf)<\/a> propose stiff new fines for fraudulent hiring of expat workers, zeroing in on companies that carry someone on their books without actually providing them with a job. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- WHISPERS- <\/strong>Roshn<\/strong> CEO David Grover reportedly left the PIF-backed <\/strong>real-estate developer earlier this <\/strong>month<\/strong>, Bloomberg<\/a> reports citing anonymous sources it says have knowledge of the matter. Grover has held the role for a little under four years. The company is building 400k homes and some 1k schools across the country. <\/p>\n

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#2- Saudia will bid King Khalid Airport farewell: <\/strong>National flag carrier Saudia will move out of King Khalid International Airport in Riyadh \u201cin a synchronized manner\u201d to leave room for the emergence of new PIF-owned airliner Riyadh Air, General Authority of Civil Aviation (GACA) VP of Strategy Mohammed Alkhuraisi told Bloomberg<\/a> in an interview last week. \u201cYou don\u2019t want two big carriers to operate out of the same hub,\u201d he said, adding that the transition would be made gradually to ensure that air connectivity to Riyadh is not affected.<\/p>\n

The carrier for pilgrims:<\/strong> Saudia will instead focus on increasing operations in Madinah in a bid to improve connectivity to the city for pilgrims.<\/p>\n

We\u2019ve been hearing of Saudia a lot lately: <\/strong>The Public Investment Fund is reportedly in early<\/a>talks<\/a> to acquire Saudia as soon as next year to add it to its aviation assets portfolio. Look for it to be added to an aviation holdco under PIF, joining Riyadh Air. <\/p>\n

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#3- <\/strong>The world\u2019s first-ever Dragon Ball themed park is coming to <\/strong>town<\/strong>, with the 500k sqm park set to be built in entertainment city Qiddiya, according to a statement<\/a> on Friday. The Japanese manga-themed park, which will be part of the PIF owned Qiddiya Investment Authority, will feature 30 themed rides, featuring main characters Goku, Freeza and others. Visitors will be able to stay in themed hotels in the park, according to the statement.<\/p>\n

Not Qiddiya\u2019s only theme park:<\/strong> Qiddiya is set to be home to a Six Flags theme park<\/a> that is being built by Paris-based Bouygues B\u00e2timent International and local contractor Almabani General Contractors. The park will be home to six theme parks and is reportedly eyeing October<\/a> of this year as its opening date.<\/p>\n

A first of everything:<\/strong> Earlier this year, Qiddiya unveiled the multi-use Prince Mohammed bin Salman Stadium, where it plans to host major sports, cultural and entertainment events, including games at the 2034 Fifa World Cup. It is set to be the first venue globally to boast a combined retractable roof, pitch and LED wall, all while sitting atop a 200m cliff in Qiddiya. The destination will also be home to the world\u2019s first gaming and esports district.<\/strong><\/p>\n

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#4- The latest round of trade talks between the <\/strong>UK and GCC countries <\/strong>will <\/strong>take<\/strong> place virtually this week<\/strong>, Oliver Christian, the British government's trade commissioner for the Middle East, told Aleqtisadiah<\/a>. Christian forecasts a 16% increase in bilateral trade, adding GBP 1.6 bn to UK\u2019s GDP, and GBP 1.2 bn to that of GCC countries. The last meeting was held in Abu Dhabi last month.<\/p>\n

#5- T<\/strong>he Environment, Water, and Agriculture Ministry has approved the <\/strong>establishment of <\/strong>agricultural <\/strong>and livestock factories at sites close to where raw materials are sourced from<\/strong> and outside industrial zones across the Kingdom in a bid to boost investments, according to Okaz<\/a>. <\/p>\n

OIL WATCH-<\/p>\n

<\/a> Oil prices slipped on Friday on the prospect that a ceasefire in Gaza might be <\/strong>near<\/strong>, Reuters<\/a> reported. Brent futures dipped to USD 85.31 a barrel, while US crude was down USD 80.63. \u201cEveryone is watching for what the weekend will bring with Gaza,\u201d John Kilduff, partner with Again Capital told the business newswire. <\/p>\n

The thesis:<\/strong> That quiet in Gaza might prompt the Houthis to slow down or stop attacks on shipping in the Red Sea.<\/p>\n

The catch: <\/strong>It doesn\u2019t look like Israel is about to back down<\/a> from its planned assault on Rafah. <\/p>\n

ALSO-<\/strong> Traders see global oil inventories depleting significantly if OPEC+ extends cuts beyond the second quarter of the year, Reuters<\/a> reported.They expect stocks to further shrink this year in response to market signals that OPEC+ could extend cuts even if demand remains strong. <\/p>\n

SPORTS-<\/p>\n

Hiba Al Owaidi became the first female main referee in the Saudi Women\u2019s <\/strong>league and <\/strong>officiated her first match on Friday between Al-Qadsiah and Al-Riyadh (1-0) held at Khobar stadium, according to the Saudi Gazette<\/a>. Al Owaidi is one of the 22 Saudi referees accredited by FIFA.<\/p>\n

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THE BIG STORY ABROAD- <\/p>\n

It was an incredibly busy weekend for news<\/strong>, regardless of whether capital markets, tech, or politics are your thing. <\/p>\n

IN BUSINESS + TECH: [Redacted] just got serious for Big Tech.<\/strong> Regulators on both sides of the Atlantic have spent the past 2-3 years trying to curb the power of major technology companies. Perhaps the most ambitious (and least well-thought-out?) swing came from the US Department of Justice, which on Thursday accused Apple of maintaining an illegal monopoly on smartphones. <\/strong><\/p>\n

The catch: <\/strong>Tech pundits argue the DoJ is overreaching by creating a smartphone category that doesn\u2019t exist (have you ever heard of a \u201cperformance phone\u201d? Didn\u2019t think so.) in a bid to make its charges stick. <\/p>\n

Essential reading:<\/strong><\/p>\n