Google Backs US$100 Million AI Fund Led by KSA-Based STV
The announcement came on the heels of the $600 billion worth of investments declared by US President Donald Trump on his visit to Saudi Arabia this week.
Saudi venture capital firm STV has launched a US$100 million artificial intelligence (AI) fund with support from global tech giant Google, with the announcement coming on the heels of the $600 billion worth of investments declared by US President Donald Trump on his visit to Saudi Arabia this week.
The new fund has been designed to accelerate the growth of AI-native startups across the MENA region, with it targeting early-stage ventures developing application-layer solutions, localized AI models, and foundational infrastructure.
In a statement, Ahmad AlNaimi, General Partner at STV, said, “We believe that most of the AI value will accrue at the application layer. As such, our AI Fund will focus on investing in ventures that specialize in application-layer AI, localized AI models, and the necessary supporting infrastructure. By combining our regional expertise with Google’s global AI leadership, we will be able to scale regional startups that can compete on a global level.”
Najeeb Jarrar, Regional Marketing Director for Google in the Middle East and Africa, added, “At Google, we have always been committed to providing access to the AI opportunity for everyone. This includes work like the MENA AI Opportunity Initiative, announced last year, alongside valuable programs such as our flagship Google for Startups programs. Our commitment to the STV AI Fund allows us to continue supporting entrepreneurs who are building the future of AI in the region.”
An STV report showed that AI startups in the MENA received only 1.5 percent of total venture capital funding in 2024, far behind the 38 percent in the US and 13 percent in India. This gap points to a major untapped opportunity for innovation, economic growth, and efficiency. In the GCC alone, AI-driven cost savings are already estimated at over $23 billion, with long-term potential expected to be significantly higher.
The new STV fund comes as President Trump announced $600 billion worth of investment agreements between American and Saudi entities, which is said to be the largest set of commercial deals signed between the two countries, as per the White House.
One of these was by Saudi-based technology and infrastructure company DataVolt, which announced that it plans to invest $20 billion in AI data centers and energy infrastructure in the US.
DataVolt also joined tech giants like Google, Oracle, Salesforce, AMD, and Uber to pledge a combined $80 billion toward technology initiatives in both countries.
Sector-specific funds were also revealed during Trump’s visit to Riyadh, including a $5 billion Energy Investment Fund, a $5 billion Aerospace and Defense Technology Fund, and a $4 billion Global Sports Fund, which are expected to direct capital into US-based industries.
In 2024, bilateral trade in goods reached $25.9 billion, with US exports at $13.2 billion and imports at $12.7 billion, resulting in a trade surplus of $443 million. Also, last year, the US ranked sixth among the top foreign investors in Saudi Arabia, with foreign direct investment reaching $15.4 billion, according to data from the Saudi Ministry of Investment.
Pictured in the lead image are representatives from STV and Google. Image courtesy STV.
