Black gold fuels AI growth as Aramco venture arm invests $200M

The Saudi Arabian energy sector is rapidly expanding into artificial intelligence infrastructure and technology development. Aramco‘s venture capital arm, Wa’ed Ventures, has made a strategic investment in UK-based AI infrastructure company Ori, marking a significant move in Saudi Arabia’s tech development strategy.

Investment Details and Strategic Vision: Wa’ed Ventures, Aramco’s $500 million venture capital fund, has invested in Ori to accelerate AI infrastructure development in the Middle East.

• The investment will facilitate Ori’s expansion into the Middle East, beginning with a new subsidiary in Riyadh
• The partnership aligns with Saudi Arabia’s Vision 2030 initiative to strengthen local AI capabilities
• Financial terms of the investment were not disclosed

Company Capabilities and Market Position: Ori has established itself as a leading provider of cloud infrastructure for AI model training and deployment.

• The company recently became one of the first UK firms to deploy Nvidia‘s H200 chips
• Ori currently operates in over 20 locations across North America and Europe
• The firm specializes in enabling large-scale AI model training, inference, and deployment for major enterprises

Regional Development Plans: The new partnership sets the stage for significant technological advancement in Saudi Arabia’s AI ecosystem.

• Ori’s Riyadh subsidiary will focus on technology localization and talent development
• The expansion comes amid surging demand for AI infrastructure in the Middle East
• Wa’ed Ventures has been actively expanding its global investment portfolio since 2022, targeting innovative companies for the Saudi market

Leadership Perspectives: Key executives from both organizations have expressed optimism about the partnership’s potential impact.

• Ori CEO Mahdi Yahya emphasized the opportunity to scale AI infrastructure solutions in the Middle East
• Wa’ed Ventures CIO Muhammed Zeeshan Hassan highlighted the importance of advanced GPU cloud solutions for their AI-focused portfolio companies

Broader Aramco Tech Initiatives: This investment is part of Aramco’s larger technology strategy.

• In 2024, Aramco partnered with Qualcomm Technologies to develop connectivity and AI solutions for industrial applications
• Aramco Digital and Intel are collaborating to establish Saudi Arabia’s first Open RAN development center
• These initiatives demonstrate Aramco’s commitment to building comprehensive digital infrastructure

Strategic Implications: Saudi Arabia’s aggressive moves into AI infrastructure signal a broader shift in the global AI landscape, as energy giants increasingly position themselves as key players in technological advancement. The success of this strategy could establish new patterns for how traditional energy companies can diversify into high-tech sectors while maintaining their core business strengths.