STV and Google Launch $100M AI Fund to Back MENA’s Next-Gen Startups

STV, one of the region’s largest venture capital firms, announced the launch of a dedicated $100 million Artificial Intelligence Fund in strategic partnership with Google. The announcement was made during the Saudi-US Investment Forum in Riyadh.

The fund aims to support AI-native startups across the Middle East and North Africa, focusing on application-layer AI, localized AI models, and infrastructure that enables scalable innovation.

According to STV’s research, only 1.5% of VC funding in MENA went to AI in 2024, compared to 38% in the US and 13% in India—highlighting a massive untapped opportunity for AI-led transformation in the region.

Ahmad AlNaimi, General Partner at STV, stated:

“We believe that most of the AI value will accrue at the application layer. Our AI Fund will focus on ventures developing AI applications, localized models, and the infrastructure supporting them. With our regional experience and Google’s global AI leadership, we can empower globally competitive startups.”

Najeeb Jarrar, Regional Marketing Director for Google MEA, added:

“We remain committed to providing access to the AI opportunity for everyone. This includes work like the MENA AI Opportunity Initiative, announced last year, alongside valuable programs such as our flagship Google for Startups programs. Our commitment to the STV AI Fund allows us to continue supporting entrepreneurs, who are building the future of AI in the region.”

This partnership is expected to spark the first wave of AI-native startups in MENA and position the region as a global innovation hub in artificial intelligence.