The Public Investment Fund (PIF) of Saudi Arabia has emerged as a major player in the world of tech investments, particularly in Silicon Valley. Over the past decade, it has invested in high-profile projects such as Uber, Lucid, and Magic Leap. Now, the PIF is reportedly preparing for a $40 billion push into artificial intelligence, with stakes in companies like Mistral, Databricks, and several other AI startups. These investments have contributed to the continued growth of the world’s largest AI startups, with Mistral raising $640 million and Databricks raising $500 million in recent funding rounds.
Sanabil, the fund’s tech arm, has become one of the few entities with the financial resources to support the growth of AI startups. The fund has invested in a range of companies across various sectors, including Chinese fashion giant Shein, education startup Classera, and health tracking ring Oura. Sanabil has also backed several venture capital firms, including Altimeter Capital Management, New Enterprise Associates, and Eric Schmidt’s Innovation Endeavor fund. These relationships with Saudi Arabia’s sovereign wealth fund have not been previously disclosed.
In addition to its investments in tech companies, Sanabil has also made significant contributions to emerging venture investors and industry stalwarts, such as Afore Capital, A* Capital, and South Park Commons. The fund has also invested in other prominent venture capital firms like Andreessen Horowitz, Coatue, and Founders Fund. While many venture capitalists do not disclose their limited partners, Sanabil’s investments have shed light on its relationships with various funds and investors.
Despite its past reputation as one of the world’s least transparent sovereign wealth funds, the PIF has begun to disclose some of its investments and financial performance since 2022. This newfound transparency has provided insight into the fund’s activities, which include investing in emerging tech companies, venture capital firms, and other industries. While some investors and founders have been cautious about disclosing ties to the kingdom due to human rights concerns, others have embraced the kingdom publicly, attending conferences and events organized by the PIF.
With close to $1 trillion in assets, the PIF is a central part of Saudi Crown Prince Mohammed bin Salman’s efforts to diversify the kingdom’s economy away from oil production. Despite reports of lower oil prices and national deficits, the fund continues to plan significant spending increases, with aims to reach $70 billion a year from current levels of $40 to $50 billion. These investments are crucial to supporting the kingdom’s economic diversification efforts and funding major projects like the state oil company Aramco’s initial public offering. The fund’s governor, Yasir al-Rumayyan, is spearheading these efforts to ensure the fund remains a key player in the global investment landscape.
