Saudi Arabia has become the only foreign investor in China’s top AI startup, Zhipu AI, according to The Financial Times. The Saudis are aiming to prevent Silicon Valley from dominating the AI industry by investing in this Chinese generative AI startup that is looking to compete with OpenAI.
Recently, Prosperity7, a part of the state-owned oil group Saudi Aramco, participated in the latest funding round for Zhipu AI as a minority investor. The Chinese startup has primarily relied on local investment and government support due to growing US restrictions in the sector. Tensions between the US and China regarding AI development have been rising, with the US imposing restrictions to limit China’s access to advanced AI chips and banning some US investment in the sector. In response, Chinese companies have been asked to purchase domestically-made AI chips instead of foreign ones.
The recent Saudi investment in Zhipu AI may signal the kingdom’s desire to prevent America from controlling the AI industry, which is currently dominated by leading players such as Meta, Microsoft, and OpenAI from Silicon Valley. Both Aramco and Zhipu AI have not yet responded to requests for comments regarding the investment. The full extent of the Saudi fund’s involvement in China’s AI sector and its potential impact on the industry remains to be seen.
