Aramco’s venture arm invests in Telefonica-backed AI startup

(Bloomberg) – Saudi Aramco’s venture arm has invested in an AI cloud startup backed by Spanish telecom giant Telefonica SA as it seeks to drive the kingdom’s push to become an artificial intelligence hub.

The deal with UK-based Ori will see the company establish a regional subsidiary in Riyadh to develop talents and advance technologies in the local sector, according to a statement on Sunday. No financial terms were disclosed.

Wa’ed Ventures, the $500 million venture arm of oil giant Aramco, has been doubling down on AI over the last year as Saudi Arabia races to build data centers and infrastructure to support its ambitions in the space. The unit has backed companies including South Korean chipmaker Rebellions Inc. and AI platform aiXplain, and has set aside $100 million to invest in other startups.

Founded in 2019, Ori provides cloud infrastructure tailored for AI and serves large corporations. It is one of the first UK companies to have deployed Nvidia Corp.’s H200 chips, according to the statement.

Ori recently closed a £140 million ($176 million) funding round backed by firms including Telefonica and U.S.-based NextEra Energy Inc. and is due to complete another “larger funding round” in 2025, it said.