Relations between China and Saudi Arabia in the field of Artificial Intelligence

In recent years, with the acceleration of global digital transformation, artificial intelligence has become a key technology driving economic and social development. The collaborative relationship in the field of artificial intelligence between China and Saudi Arabia has shown significant growth and deepening trends. This cooperation has not only made substantial progress in technological innovation and commercial fields but has also played an important role in promoting the strategic level of relations between the two countries.

Recent Developments in China-Saudi Cooperation in Artificial Intelligence

On July 9, 2024, the Saudi Commission for Tourism and Baidu signed a Memorandum of Cooperation at the 2024 ITB Shanghai International Tourism Trade Fair. The collaboration aims to enhance Saudi Arabia’s digital influence in the Chinese market for tourism by leveraging artificial intelligence and large-scale model technologies. This initiative seeks to provide seamless experiences for tourists and showcase Saudi Arabia’s scenic beauty. According to the agreement, both parties will collaborate deeply in areas such as customized maps, AI avatars, and digital marketing using Baidu’s Intelligent Cloud solutions tailored for the cultural and tourism industries.

On May 31, 2024, during the 10th Ministerial Meeting of the China-Arab States Cooperation Forum in Beijing, Chinese Foreign Minister Wang Yi met with Saudi Foreign Minister Faisal, who was visiting China. At this meeting, leaders of both countries strengthened mutual trust and friendship, charting the course for a comprehensive strategic partnership between China and Saudi Arabia. The leaders emphasized consolidating the political foundation of bilateral relations, enhancing strategic alignment for development, promoting green and sustainable development, and achieving mutual benefits and win-win outcomes, including in the field of artificial intelligence cooperation.

On May 29, 2024, Lenovo Group and Alat, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), reached a strategic cooperation agreement. Alat plans to provide Lenovo with $2 billion interest-free convertible bonds to support the establishment of Lenovo’s regional headquarters for the Middle East and Africa in Riyadh, including customer centers, research and development centers, and a new manufacturing base for personal computers and servers. Concurrently, Prosperity7 Ventures of Saudi Aramco joined the latest funding round of Zhupu AI, a Chinese generative AI startup, becoming the first foreign investment firm to publicly support a key player in China’s AI sector. Zhupu AI’s valuation in this round of financing approached $3 billion.

On February 20, 2024, Dahua Technology and Alat, a wholly-owned subsidiary of PIF, reached a strategic cooperation agreement in Riyadh, Saudi Arabia. The two parties jointly established a joint venture company, Alat AIVisio Technology Co., Ltd. (AIVisio), with a total investment of approximately $200 million. AIVisio will establish a fully automated and advanced global intelligent manufacturing center in Saudi Arabia, exploring development cooperation in urban infrastructure sectors such as smart cities, intelligent transportation, smart buildings, and smart education. Amit Midha, CEO of Alat, Zhao Yuning, Executive Director of Dahua Technology, and Chen Qiang, President of Overseas Marketing Center, attended the event.

Simultaneously, Chinese AI companies have participated in Saudi Arabia’s projects to build the new Future City. For instance, autonomous driving company Pony.ai secured approximately $100 million investment from the Future City Investment Fund. According to the agreement, Pony.ai will establish a regional R&D and manufacturing center in Saudi Arabia. Additionally, Alibaba Cloud and Saudi Telecom Company have jointly ventured into the field of 5G technology. These collaborations have not only driven the development of Saudi Arabia’s AI industry but also laid a solid foundation for Chinese enterprises to expand into the Middle Eastern market.

Analysis of China-Saudi Cooperation in the Field of Artificial Intelligence

China and Saudi Arabia, as regional leaders, have demonstrated clear complementarity in advancing AI technology development and application. Their cooperation is not only based on their respective economic strategies but also forms part of the global tech competition and geopolitical strategy.

Firstly, China’s technological strength and innovation capacity in the field of artificial intelligence are globally recognized. From Chinese tech giants like Baidu and Alibaba to emerging AI startups, Chinese enterprises have shown robust research and development capabilities in areas such as natural language processing, machine learning, and intelligent manufacturing. For instance, Zhupu AI, a domestic AI company developing solutions similar to ChatGPT, has not only received support from giants like Alibaba and Tencent but also attracted investment from Prosperity7 Ventures, a subsidiary of Saudi Aramco, highlighting China’s leading position in AI technology innovation.

Secondly, as an economic powerhouse in the Middle East, Saudi Arabia has also shown a proactive attitude and substantial potential towards AI development. The country is not only influential in the energy sector but also ambitious in technology innovation and urban development. For example, the collaboration between Saudi Public Investment Fund (PIF) and China’s Dahua Technology to establish a global intelligent manufacturing center explores cooperation in smart cities and intelligent transportation, reflecting a strategic consensus and collaborative growth in intelligent infrastructure.

Further strengthening AI cooperation between China and Saudi Arabia benefits not only the sharing of technological achievements and economic complementarity but also contributes positively to the global era of intelligence. For instance, the cooperation between Saudi Arabia and Chinese enterprises in future city projects not only promotes the implementation of technology but also brings modern and sustainable development models to the Middle East. Moreover, through deep collaboration in digital marketing and intelligent manufacturing, Chinese enterprises can help enhance Saudi Arabia’s digital influence in the Chinese market, further expanding Saudi’s international influence and attractiveness.

However, there are still some challenges and obstacles in AI cooperation between China and Saudi Arabia, such as issues of technology transfer, cross-cultural communication difficulties, and intellectual property protection. Strengthening intergovernmental cooperation mechanisms, promoting strategic alignment between enterprises, and enhancing talent exchange can further advance AI cooperation and development between China and Saudi Arabia.

Conclusion

The cooperation in AI between China and Saudi Arabia is an important part of their technological exchange and economic collaboration. By jointly promoting technological innovation, exploring business models, and building infrastructure, not only has the flow of technology and capital been facilitated, but also significant economic and social benefits have been brought to both parties. Looking ahead, as cooperation deepens, the AI collaboration between the two countries is expected to reach new heights and contribute to the global development of AI technology.

Disclaimer. The views and opinions expressed in this analysis are those of the author and do not necessarily reflect the official policy or position of MEPEI. Any content provided by our author is of his opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.