Saudi Aramco's $2222.SR venture division has made a strategic move by investing in a cloud startup that leverages artificial intelligence, highlighting the company's ambition to establish itself as a center for AI in Saudi Arabia. This deal with the British company Ori marks a significant step in advancing technology in the Middle East.
According to a recent announcement, the deal includes the establishment of a regional office for Ori in Riyadh, which will facilitate the development of local talent and advanced technology in the cloud computing sector. The financial terms of the agreement remain undisclosed, but the details surrounding the venture capital underscore the seriousness of these intentions.
Wa'ed Ventures, the venture arm of Saudi Aramco, operates with a fund of $500 million and has doubled its investments in artificial intelligence technologies over the past year. This trend indicates the kingdom's strategic approach to building the necessary infrastructure for modern technological sectors.
Investment choices have encompassed chip developers like Rebellions Inc. and AI platform aiXplain. Notably, $100 million has been allocated to support other startups, emphasizing Saudi Aramco's commitment to creating an innovative ecosystem.
Founded in 2019, Ori provides cloud infrastructure tailored for artificial intelligence. The startup serves large corporate clients and has become one of the first to implement Nvidia Corp.'s $NVDA H200 chips. Recently, Ori completed a funding round of £140 million ($176 million), backed by major players like Telefonica $TEF and NextEra Energy Inc. $NEE, establishing Ori as a noteworthy player in the cloud solutions market.
With the continuous growth of the market, expectations for Ori remain high, and the company plans to finalize a larger funding round in 2025. This move enhances its position in the context of increasing demand for cloud technologies in the region.
Advantages of Collaboration
Creation of new jobs in Saudi Arabia;
Stimulating the development of technology and local infrastructure;
Increasing global investments in the region.
Considering all the aforementioned factors, it is evident that Saudi Aramco's investment in Ori opens new horizons for technology development in the Middle East and serves as an example of the active participation of the oil sector in digital transformation.
These developments have the potential to catalyze a significant uptick in the company's market valuation
The company's embrace of innovative technologies is gaining recognition and building stakeholder confidence
Exploring multiple business strategies is proving to solidify the firm's competitive standing
This investment showcases Saudi Aramco's commitment to driving innovation and developing AI capabilities in the region.
The introduction of innovative solutions could serve as a strong incentive for investors, driving up the company’s market value
