- Saudi AI company Arat will pull out of China if requested by the United States, CEO Amit Midha told Bloomberg.
- Saudi Arabia is pouring billions of dollars into AI and semiconductor efforts to become a major hub.
- There are growing concerns that relations with the Middle East provide China with access to advanced technology.
Saudi Arabia’s new state-backed fund, focused on semiconductors and AI technology, has guaranteed withdrawal from China if requested by the US government.
“The US is the number one market, the US is the number one partner, and we hope to partner more deeply,” Arat CEO Amit Midha told Bloomberg during the Milken Institute Global Conference. .
The company, which is being financed by a $100 billion capital injection from Saudi Arabia’s Public Investment Fund, will have no problem exiting China if asked:
“The requirement so far has been to completely separate the manufacturing and supply chain, but if partnering with China becomes a problem for the United States, we will sell,” Mida said.
As competition intensifies between the US and China, the US is in talks with Saudi Arabia to ensure that its massive AI buildup does not strengthen China’s own efforts in this area, according to Bloomberg. Officials have long argued that China’s access to AI and semiconductor technology is a national security threat.
Saudi Arabia is in the spotlight as it pours billions into AI to become a major industrial hub. Separate from its investment in Aratt, the company has raised an additional $40 billion in AI funding in partnership with Silicon Valley companies, The New York Times reported.
But this has also drawn scrutiny from the United States, which fears that China’s ties to the Middle East could give Beijing a loophole through sanctions. Since late 2022, the US government has targeted China with a number of technology sanctions.
U.S. authorities are already under pressure to force AI companies such as G42 to leave China. In response, UAE companies maintained access to US AI systems, leading to a $1.5 billion investment from Microsoft, according to Bloomberg.
For his part, Mida sees value in sticking with the U.S., touting his company as a meaningful help in building the necessary AI infrastructure.
He said the company plans to partner with two U.S. tech companies this summer, while also co-investing with another U.S. fund. He did not name the companies involved.
