US companies are helping Saudi Arabia to build an AI powerhouse

Arun Chandrasekaran, distinguished VP analyst at Gartner, said the investments signify Saudi Arabia’s “ambition to become a central hub for AI development, rivaling established tech centers in the US and China.”

Other analysts weighed in on Saudi Arabia’s goals. Neil Shah, vice president research at Counterpoint Research, said the push could make it the next “oil hub” for AI, serving both local and global needs, while Amandeep Singh, practice director at QKS Group, said, “This isn’t just about money. It’s a strategic play to become a long-term AI power and a neutral meeting point for global AI.”

Despite the vast political and financial resources in play, though, the analysts forecast challenges ahead when it comes to attracting top talent, reducing reliance on Western chips, and building data governance trust.