Saudi Arabia’s Public Investment Fund (PIF) has been heavily investing in Silicon Valley’s tech projects, including Uber, Lucid, Magic Leap, Mistral, and Databricks. Recently, the PIF has been gearing up for a reported $40 billion push into artificial intelligence, making significant investments in AI startups globally. Mistral, which raised $640 million in June, disclosed that Saudi’s Sanabil was a participant in its Series B funding round, as did Databricks during its last funding round.
Sanabil, the entity responsible for managing PIF’s private investments, has updated its list of investments, revealing stakes in various startups including French AI champion Mistral and Databricks. Additionally, the fund has invested in Chinese fast fashion giant Shein, education startup Classera, and health tracking ring Oura. Sanabil has also backed several venture capital firms, including Altimeter Capital Management, NEA, and Eric Schmidt’s Innovation Endeavor fund.
The PIF has also made investments in Neil Shen’s Hongshan Capital, Chinese funds like 5Y Capital and Yunqi Partners, as well as Sweden’s Northzone. The fund has disclosed investments in VC giants including Andreessen Horowitz, Coatue, and Founders Fund. NEA, which manages over $23 billion in assets, appears on Sanabil’s list of businesses where it has a direct stake, but declined to comment on the matter.
With assets close to $1 trillion, PIF plays a crucial role in Saudi Arabia’s efforts to diversify its economy away from oil production. PIF governor Yasir al-Rumayyan announced plans to increase spending to $70 billion a year, up from the current $40 to $50 billion, to drive economic growth amid lower oil prices and national deficits. The fund is also known for its massive investments in SoftBank’s Vision Fund, its interest in the PGA golf league, and the futuristic city project, Neom.
Venture capitalists named on Sanabil’s website have not commented on their relationship with the PIF, although in the past, many investors and founders have been cautious due to concerns about human rights violations in Saudi Arabia. However, some VCs have recently embraced partnerships with the country, with some attending major conferences organized by the PIF. The kingdom’s Crown Prince Mohammed bin Salman has been actively involved in promoting Saudi’s economic diversification efforts, including through events with prominent VCs.
The recent disclosures shed light on Saudi Arabia’s sovereign wealth fund shifting its focus towards emerging venture investors and industry stalwarts like Afore Capital, A* Capital, and South Park Commons. Previously known for its lack of transparency, the PIF has begun revealing some of its investments and financial performance starting in 2022. Despite challenges posed by lower oil prices and national deficits, the PIF remains committed to investing in tech projects, AI startups, and various venture capital firms as part of its economic diversification strategy.
