Amazon-Backed Scale AI Launches Saudi Arabia Office Amid Middle East AI Boom
Riyadh, Saudi Arabia – May 12, 2025
In a strategic move underscoring the Middle East’s growing influence in artificial intelligence, Scale AI, the San Francisco-based data infrastructure company backed by Amazon.com Inc., has opened a regional office in Riyadh, signaling its formal entry into the Gulf tech ecosystem.
This expansion comes as Saudi Arabia intensifies efforts to position itself as a global AI powerhouse, having recently pledged $14.9 billion in AI investments, according to the Saudi Data and Artificial Intelligence Authority (SDAIA). Scale AI’s move aligns with the Kingdom’s broader Vision 2030 agenda, which focuses heavily on digital transformation and economic diversification beyond oil.
Why Saudi Arabia?
According to company sources and regional analysts, the decision to establish a footprint in Saudi Arabia was driven by:
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Massive state-led investment in AI infrastructure and innovation hubs.
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A growing demand for data labeling, AI training models, and sovereign AI systems.
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Supportive policies such as the AI Hub Law, granting foreign AI firms localized data sovereignty.
The new Riyadh office will serve as Scale AI’s Middle East operational headquarters, with plans to onboard local talent and collaborate with regional government agencies, universities, and private sector entities.
Amazon’s Stake and Broader AI Push
Scale AI, currently valued at over $14 billion, counts Amazon Web Services (AWS) among its major investors. Amazon’s own regional AI ambitions are vast, having announced a $6.3 billion AI center in the UAE and committing over $100 billion globally towards AI-focused capital expenditures in 2025.
Through AWS, Amazon is also building a new cloud region in Saudi Arabia, expected to be completed by 2026, which will complement Scale AI’s efforts by providing necessary compute infrastructure for training large language models (LLMs) and vision systems.
CEO Alexandr Wang’s Vision
Alexandr Wang, CEO of Scale AI, stated during the launch event:
“Saudi Arabia’s commitment to becoming a global AI leader makes it a natural fit for our expansion. We’re excited to empower institutions here with high-quality labeled data and AI pipelines that support secure, sovereign technologies.”
Wang also hinted at partnerships with local startups and research institutions, positioning Scale AI as a central player in government-led smart city projects, such as NEOM and The Line, both of which integrate advanced AI in urban design and logistics.
Regional AI Race Accelerates
Scale AI’s move adds to a growing list of global tech players entering the Middle East AI arena. Earlier this year:
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Salesforce committed $500 million to Saudi Arabia’s AI ecosystem.
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NVIDIA deepened ties with G42 in the UAE for AI chipset distribution.
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OpenAI and Microsoft signaled interest in regional partnerships.
What’s Next for Scale AI in MENA?
While the Riyadh office is the first in the region, executives revealed plans to open additional offices in Abu Dhabi and Doha within the next 18 months. Scale AI also aims to localize its solutions by offering Arabic language model training and region-specific datasets.
About Scale AI
Founded in 2016, Scale AI specializes in providing high-quality labeled data for training AI systems across industries including defense, autonomous vehicles, and enterprise AI. Its clients include the U.S. Department of Defense, OpenAI, and Meta Platforms Inc.
Conclusion
Scale AI’s Saudi Arabia expansion reflects the seismic shifts occurring in the global AI ecosystem, where Gulf nations are not just adopters, but emerging leaders. As Saudi Arabia ramps up AI spending and builds sovereign infrastructure, partnerships with firms like Scale AI may define the next era of global technology leadership.
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