Saudi Arabia’s ambitious plan to become a hub for artificial intelligence startups has hit a roadblock as founders who participated in the Gaia program have yet to receive promised grants and investment funds. The program, aimed at creating 300 new AI startups in just three years, has reportedly failed to deliver on its financial commitments to many of the startups involved. While the first cohort received some government grants and a fraction of the investment funds, founders from the second and third cohorts have faced delays and uncertainty.
New Native, the startup accelerator running the Gaia program, has been slow to fulfill its promise of $40,000 in government grants and $100,000 in equity investment for participating startups. Some founders have not received any money at all, despite spending tens of thousands of dollars on travel and lodging to participate in the program. The program, supported by the National Technology Development Program (NTDP), aims to boost Saudi Arabia’s tech ecosystem and attract international founders to the kingdom.
Founders in the Gaia program have expressed frustration with the delays in receiving funding and the lack of transparency from New Native. While NTDP has offered additional support to startups in the program, some founders are still waiting for their grants to be paid. The $100,000 in funding, promised in exchange for 7% equity in the startups, has also been delayed and is now uncertain due to the failure of New Native’s VC partner to provide the funds as promised.
Despite the challenges faced by the Gaia program, Saudi Arabia continues to push forward with its plans to invest in tech and AI. The kingdom announced $12 billion in deals with tech giants at the Leap conference and is reportedly in talks with venture capitalists to establish a $40 billion AI-focused fund. The AI ambitions are part of Prince Mohammed bin Salman’s Vision 2030 plan to diversify the kingdom’s economy and reduce its reliance on fossil fuels.
As Saudi Arabia works to establish itself as an AI hub outside of the U.S., the difficulties faced by founders in the Gaia program highlight the challenges of building a tech ecosystem in a developing market. While the kingdom’s ambitions are grand, the reality on the ground has proven to be more complicated. Founders are still hopeful that the program will succeed in achieving its goals, but the delays in funding and uncertainty about the future of the program have raised concerns among participants.
Minister Al Swaha remains optimistic about Saudi Arabia’s tech ambitions and continues to promote the kingdom as a destination for tech startups and investors. As the country works to implement Vision 2030 and diversify its economy, the success of programs like Gaia will be crucial in achieving its goals. Despite the setbacks faced by some founders, the Saudi government remains committed to supporting the growth of the tech sector and attracting international talent to the kingdom.
