Saudi Arabia's sovereign wealth fund is reportedly in discussions with Andreessen Horowitz, a leading American venture capital firm, and potentially other entities to establish a $40 billion fund focused on investing in artificial intelligence (AI), as reported by the New York Times and later confirmed by CNBC sources. According to two individuals familiar with the matter, who spoke on condition of anonymity due to press restrictions, talks regarding this partnership have been ongoing for several months. The proposed collaboration would involve Saudi Arabia's Public Investment Fund (PIF), which has assets totaling $925 billion, and Andreessen Horowitz, a prominent venture capital firm based in Silicon Valley. It is important to note that while discussions are underway, they have not yet been finalized. The individuals, who declined to disclose any other potential parties involved, mentioned that Andreessen Horowitz and the PIF are the primary entities under consideration. Neither the PIF nor Andreessen Horowitz have immediately responded to CNBC's request for comment on the matter. The PIF has been actively pursuing investments as part of the kingdom's efforts to diversify its revenue streams away from oil, a key objective outlined in Saudi Crown Prince Mohammed bin Salman's Vision 2030 initiative.

The fund has made substantial investments in various sectors and established joint funds with major international companies such as Uber, Bank of America, Citi, SoftBank, and Blackstone. Andreessen Horowitz, managing assets worth $35 billion, has a strong track record of supporting successful companies including Airbnb, Coinbase, Facebook, and Slack. The firm's portfolio also includes close to 100 AI-related startups. In a blog post on the firm's website in June 2023, co-founder Marc Andreessen highlighted the significance of actively pursuing global AI dominance, stating that the consequences of not doing so are substantial.