Saudi Arabia’s ambitious tech accelerator program, Gaia, intended to create 300 new artificial intelligence startups in just three years, has hit roadblocks as founders allege delays in receiving promised government grants and equity investments. While the program was touted as a way to attract global AI founders to the kingdom, many participants have not received the $40,000 grants or $100,000 in equity investment they were promised. This has left some founders feeling bitter and questioning the credibility of the Saudi government’s support for tech startups.
The Gaia program is funded by the National Technology Development Program (NTDP), a Saudi government agency focused on building the kingdom’s tech ecosystem. While the NTDP has claimed to offer extra support to Gaia startups, founders have faced challenges in receiving the grants due to delays in processing paperwork and bureaucratic hurdles. The promised $100,000 investment in exchange for 7% equity was supposed to come through New Native’s VC partner, Venture Growth Partners, but founders have raised concerns about the lack of funding and support from these entities.
Despite the challenges faced by Gaia founders, Saudi Arabia continues to push forward with its tech ambitions, announcing deals worth billions of dollars with tech giants like Google, Amazon, and Oracle. The kingdom is also looking to establish Riyadh as a hub for AI startups and invest heavily in tech and AI sectors as part of Prince Mohammed bin Salman’s Vision 2030 plan to diversify the economy. However, recent reports indicate that the Neom project, a key component of the Vision 2030 plan, may be scaled back due to financial constraints.
The plight of Gaia founders highlights the complexities and challenges faced by tech startups in Saudi Arabia, as they navigate government support programs and funding mechanisms. While the kingdom aims to position itself as an AI hub outside the U.S., founders participating in the Gaia program have expressed frustration over delays in funding and lack of support. Despite these setbacks, some founders remain optimistic about the potential for local business opportunities and partnerships in the kingdom.
Moving forward, it remains to be seen how the Gaia accelerator program and Saudi Arabia’s broader tech ambitions will evolve, especially in light of the challenges faced by founders. As the kingdom continues to invest in tech and AI sectors, it will be crucial for government agencies and accelerator programs to address the concerns raised by startup founders and provide the necessary support to foster the growth of the tech ecosystem. Saudi communications minister Al Swaha’s promise to demonstrate results and drive change in the region through technology and talent will be put to the test as the kingdom strives to realize its tech ambitions.
