Reading: Amazon-Backed Scale AI Expands into Saudi Arabia Amidst Middle East AI Boom

Amazon-Backed Scale AI Expands into Saudi Arabia Amidst Middle East AI Boom

Amin khan
8 Min Read

San Francisco-based artificial intelligence company Scale AI, which is Amazon-Backed by Amazon, has announced plans to open a new office in Riyadh, Saudi Arabia by the end of 2025. This move is part of a broader regional expansion strategy aimed at tapping into the Middle East’s rapidly growing appetite for AI technologies. The expansion marks a significant step for Scale AI, signaling its intention to deepen engagement with governments and industries that are investing heavily in digital transformation.

Trevor Thompson, Scale AI’s Global Managing Director, highlighted the region’s fast-paced development, stating that beyond the United States and China, the Middle East is now emerging as one of the most dynamic areas for AI adoption. This shift is propelled by a combination of visionary government initiatives, strategic public-private partnerships, and a population increasingly embracing digital innovation.

Amazon-Backed

Strategic Regional Expansion

The new Riyadh office won’t stand alone. Scale AI also has plans to establish a presence in the United Arab Emirates, solidifying its role as a key player in the Gulf’s technological future. This dual-office approach not only enhances the company’s regional accessibility but also positions it close to important partners and clients.

Earlier this year, Scale AI signed a five-year agreement with Qatar’s Ministry of Communications and Information Technology. The agreement aims to create more than 50 AI-driven applications designed to improve public sector services, including citizen engagement platforms, data analytics systems for government efficiency, and intelligent transportation tools. These developments showcase Scale AI’s commitment to long-term investments that serve both commercial and societal goals.

Moreover, in March 2025, Scale AI entered into a major partnership with Inception, a subsidiary of Abu Dhabi-based technology group G42. This collaboration is focused on delivering AI solutions across multiple sectors, including healthcare, corporate data infrastructure, and public governance systems. By pooling their resources and expertise, the two companies plan to accelerate AI implementation across the region while setting new standards in data quality and performance.

Aligning with Saudi Arabia’s Vision 2030

Scale AI’s entrance into Saudi Arabia aligns closely with the kingdom’s Vision 2030 framework—a long-term plan aimed at reducing the country’s dependence on oil and fostering a knowledge-based economy. One of the cornerstone objectives of Vision 2030 is to become a global leader in artificial intelligence, and Scale AI’s arrival directly supports that goal.

The Saudi government has already taken bold steps to reinforce its AI ambitions. Earlier this year, it announced the launch of HUMAIN, a state-backed AI venture that seeks to develop Arabic-language AI models, strengthen regional data capabilities, and build homegrown expertise in machine learning. This initiative is expected to create an AI ecosystem tailored to the cultural and linguistic needs of the Middle East, setting a unique precedent in the global AI race.

In addition to this, the kingdom has collaborated with leading tech companies to build out its digital infrastructure. Notably, it is developing a $10 billion AI and data center hub in partnership with major industry players. These investments are designed to position Saudi Arabia as a top-tier destination for international tech firms looking to scale their global footprint.

Amazon Web Services, for example, is investing more than $5 billion in building new data centers in Saudi Arabia by 2026. These facilities will provide the computing power necessary to support large-scale AI training models, cloud services, and advanced analytics platforms—many of which will directly benefit companies like Scale AI.

Scale AI’s Meteoric Rise

Founded in 2016, Scale AI specializes in providing high-quality labeled datasets used to train machine learning models. These datasets are crucial for everything from autonomous vehicles to generative AI systems, enabling algorithms to “learn” through real-world examples. The company plays a vital role in ensuring AI systems behave in accurate, ethical, and safe ways.

Over the past few years, Scale AI has rapidly grown into one of the most influential AI startups in the world. It serves clients across a wide range of industries—from defense and healthcare to finance and e-commerce. Its customer list includes industry titans such as Microsoft, OpenAI, and the U.S. Department of Defense.

In 2024, Scale AI generated approximately $870 million in revenue. The company’s market valuation surged to $13.8 billion after securing $1 billion in funding from major investors, including Amazon and Meta Platforms. This funding round reflects growing investor confidence in the value of high-quality data infrastructure in the age of artificial intelligence.

Much of the company’s recent growth has been driven by the generative AI wave, as businesses and governments seek ever-more sophisticated solutions to process information, generate content, and automate decision-making. Scale AI has been instrumental in training and validating many of the models that now power leading-edge technologies across the globe.

A Promising Future in the Gulf

With its regional office in Riyadh, Scale AI is stepping into a market that is hungry for technological transformation. Saudi Arabia and its neighbors are not only investing in infrastructure but also in the education and upskilling of their populations to prepare for a future driven by artificial intelligence.

Local universities, research centers, and innovation hubs are being established at a rapid pace, creating fertile ground for collaboration between governments, academia, and private companies. Scale AI’s presence in the region will likely spark more partnerships, research initiatives, and pilot projects that can shape how AI is used responsibly and effectively in diverse settings.

At the same time, Scale AI’s expansion serves as a beacon for other U.S.-based tech companies considering similar moves. By becoming an early mover in this transformative market, Scale AI has the opportunity to shape regional standards, influence policy discussions, and capture new growth opportunities long before the market becomes saturated.

Conclusion

Scale AI’s expansion into Saudi Arabia is more than just a business move—it is a strategic commitment to a region that is rapidly becoming a powerhouse in artificial intelligence. As governments in the Middle East double down on their AI investments, Scale AI is positioning itself to be a foundational player in this digital renaissance.

With a proven track record, strong financial backing, and a clear regional strategy, Scale AI is not only building offices—it’s building the future of artificial intelligence in one of the most promising markets in the world.

Supple Tek Prepares for Big Reveal at Saudi Food Show 2025

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Lead