Scale AI Expands to KSA

Scale AI, an Amazon-backed startup specialising in AI development through data labelling, is set to open an office in Saudi Arabia by the end of the year. This move is part of a broader Middle East expansion, with plans for another office in the United Arab Emirates. The expansion aligns with Gulf nations' strategies to attract tech firms and develop local AI hubs, supporting economic diversification.

Scale AI, founded in 2016, provides data cleaning and labelling services for AI training, serving clients like OpenAI and Microsoft. The Middle East's AI market is projected to contribute $320 billion to the regional economy by 2030, with Saudi Arabia expected to gain $135.2 billion. This expansion follows Scale AI's recent deals with Qatar and Abu Dhabi's G42 to support public sector AI projects.

Gulf states are making substantial investments in AI, with the UAE and Saudi Arabia accounting for a significant portion of tech startup funding in the MENA region. Saudi Arabia's innovation ecosystem is growing, evidenced by a 13% increase in patent filings. Scale AI's expansion aims to serve Saudi Arabia's rapidly developing technology sectors and digital transformation programmes.