Saudi Arabia turns to Aramco to fuel AI ambitions - Semafor

Saudi Aramco acquired a 49% stake in HUMAIN, the government’s AI champion, in exchange for AI assets and $2.6 billion as the kingdom once again leans on the state-controlled oil producer to power its diversification goals.

The deal further intertwines Public Investment Fund, which owns the rest of HUMAIN, with Aramco: The Saudi wealth fund already holds a 16% stake in Aramco, a transfer aimed at giving the fund a steady stream of dividend income, and PIF Governor Yasir Al Rumayyan is also chairman of the oil company. Saudi Arabia has frequently turned to Aramco, considered the most effective part of Saudi Inc., to help deliver its ambitions. The oil giant is also building a stadium, investing in renewable power projects, and often borrows during downturns to maintain funding to the state.

The latest cash injection from Aramco will help fuel investment plans at a time when many of the PIF’s ambitions are being cut back, there’s a greater focus on getting funding from other investors, and returns are falling.

Details of the assets transferred as part of the deal have not been disclosed, but Aramco is expected to put some of its AI infrastructure developed within its technology unit, Aramco Digital (which used to be led by HUMAIN CEO Tareq Amin), into HUMAIN. Aramco will keep control of its venture arm, which already has a Silicon Valley office and has been investing in tech for years.