As nations in the Gulf region pour billions into artificial intelligence, Scale AI is building its footprint with new offices and significant partnerships.
Scale AI, a San Francisco-based firm supported by Amazon, is set to inaugurate a new office in Riyadh by the end of this year as part of its expansion strategy in the Middle East.
Additionally, the startup aims to establish a presence in the United Arab Emirates, although it has not yet specified a timeline for this development.
Trevor Thompson, the global managing director of the company, noted that the Gulf region is one of the fastest-growing areas for AI adoption outside of the US and China.
Countries in the Gulf, particularly Saudi Arabia, have been making substantial investments in technology startups, data centers, and computing infrastructure, encouraging firms to launch local operations and generate regional employment. For example, Salesforce has already initiated hiring for a $500 million investment in the kingdom.
Established in 2016, Scale AI specializes in data labeling services crucial for training AI systems, utilizing an extensive network of contract workers. Its clientele includes notable companies like OpenAI and Microsoft.
Last year, Scale AI reached a valuation of $13.8 billion following a $1 billion funding round that included backing from Amazon, Meta, and other investors.
The company reported approximately $870 million in revenue for 2024 and is currently engaged in discussions that could significantly increase its valuation.
Scale AI is also actively enhancing its regional connections. In February, it entered into a five-year agreement with Qatar aimed at improving public services, followed by a collaboration with Inception, a company based in Abu Dhabi, in March.
This announcement comes in conjunction with former President Donald Trump’s impending visit to Saudi Arabia, where his administration is contemplating lifting export restrictions on advanced AI chips, which could enhance the Gulf’s access to cutting-edge technology.
Interestingly, Scale AI’s former managing director, Michael Kratsios, is now advising Trump on technology-related issues.