Saudi Arabia invests in Chinese AI startup to counter US restrictions and support China's tech industry.

From Axel Springer SE: 2024-06-01 06:13:00

Saudi Arabia’s state-owned oil group, Saudi Aramco, is reportedly investing in China’s AI development. The fund recently became the sole foreign investor in Zhipu AI, China’s largest generative AI startup. The move is seen as a strategic step to counter US restrictions and prevent Silicon Valley from dominating the AI industry.

Tensions between the US and China have escalated, with restrictions impacting China’s AI development. Saudi Arabia’s investment in Zhipu AI comes amid growing US restrictions, limiting access to advanced AI chips. The move reflects a broader effort to challenge American dominance in the AI sector and support China’s tech industry.

Chinese officials have urged domestic tech giants to purchase locally-made AI chips to reduce reliance on foreign suppliers. Companies like ByteDance have been instructed to cut spending on foreign-made chips to comply with the new regulations. The push for local production aligns with China’s goal to strengthen its semiconductor industry and reduce dependence on foreign technology.



Read more at Axel Springer SE: Saudi Arabia Is Funding Chinese Startup Competing With OpenAI: Report