Key points
- Kingdom stresses strategic technological optionality
- Energy advantage supports AI infrastructure ambitions
- WEF unveils digital embassy framework
DAVOS: Saudi Arabia’s Minister of Investment Khalid Al-Falih said the global race in artificial intelligence is accelerating rapidly, warning that no single country or company will dominate the technology and stressing the Kingdom’s need to preserve strategic “optionality” amid fast-shifting dynamics.
Speaking at the World Economic Forum’s “AI Power Play, No Referees” panel on Tuesday, Al-Falih described artificial intelligence as “truly the transformation of this century,” while cautioning that it will soon become commoditised. He argued that AI’s power lies in broad accessibility rather than monopoly control, calling for global diffusion of the technology, reports Arab News.
“The essence of AI’s power is that it has to be accessible,” he said, adding that diffusion must occur not only within competitive economies but across borders worldwide. While acknowledging the United States’ current lead, Al-Falih said the future hierarchy of AI leadership remains uncertain.
“We don’t know who’s going to be ahead four or five years from now,” he noted, underlining why Saudi Arabia reserves the right to maintain flexibility.
Emerging global AI hub
Riyadh has positioned itself as an emerging global AI hub, supported by heavy investments in technology, infrastructure and connectivity. Al-Falih highlighted Saudi Arabia’s competitive energy advantage, noting that low-cost and renewable energy could power AI data centres as part of the Kingdom’s broader economic diversification drive.
He said Saudi Arabia is investing across the entire technology stack, including applications, large language models and cross-border connectivity, with the aim of enabling AI capabilities to flow between Europe, Asia and beyond. “We believe this is going to be a global good,” he said.
Separately at Davos, the World Economic Forum announced the first phase of a Digital Embassy Framework to guide cross-border sovereign AI and data hosting. The initiative aims to strengthen trust, governance and data sovereignty as countries navigate the growing demands of AI infrastructure.
