Saudi Arabia has become the first foreign investor in China’s top AI startup, Zhipu AI, according to The Financial Times. This move by Riyadh aims to prevent Silicon Valley from controlling the AI industry entirely.
Zhipu AI is China’s largest generative AI startup and is looking to compete with OpenAI. Prosperity7, a subsidiary of Saudi Aramco, recently participated in Zhipu AI’s latest funding round as a minority investor. The Saudis have been investing heavily in local companies and government support to remain competitive in the sector due to growing US restrictions.
China has been facing increasing tensions with the US regarding its development of advanced AI technology. The US has imposed restrictions on Chinese access to advanced AI chips and banned some US investment in the sector. In response, Chinese companies are being encouraged to purchase domestically-made chips instead of foreign ones.
The recent Saudi investment in Zhipu AI may be seen as an attempt by Riyadh to strengthen its position in the global tech industry and prevent Silicon Valley from maintaining its dominance over it entirely. However, it remains unclear how much influence Saudi Arabia will have over Zhipu AI and what impact this investment will have on the industry as a whole.
Both Aramco and Zhipu AI have not yet responded to requests for comment regarding their involvement in this deal.
In conclusion, Saudi Arabia has made history by becoming the first foreign investor in China’s top AI startup, Zhipu AI. This move highlights Riyadh’s growing presence in the global tech industry and its desire to compete with leading players such as Meta, Microsoft, and OpenAI from Silicon Valley. However, it remains uncertain how much influence Saudi Arabia will have over Zhipu AI and what impact this investment will have on the industry as a whole.
