Saudi SDAIA Signs MoU with IBM to Establish AI Center of Excellence 

The MoU aims to establish a specialized center of excellence for developing generative AI technologies, focusing on implementing innovative applications that meet the needs of government entities according to the best global standards and governance frameworks. (SPA)
The MoU aims to establish a specialized center of excellence for developing generative AI technologies, focusing on implementing innovative applications that meet the needs of government entities according to the best global standards and governance frameworks. (SPA)
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Saudi SDAIA Signs MoU with IBM to Establish AI Center of Excellence 

The MoU aims to establish a specialized center of excellence for developing generative AI technologies, focusing on implementing innovative applications that meet the needs of government entities according to the best global standards and governance frameworks. (SPA)
The MoU aims to establish a specialized center of excellence for developing generative AI technologies, focusing on implementing innovative applications that meet the needs of government entities according to the best global standards and governance frameworks. (SPA)

The Saudi Data and AI Authority (SDAIA) signed on Tuesday a Memorandum of Understanding (MoU) with the global company IBM during the third Global AI Summit (GAIN) underway in Riyadh.

CEO of the National Center for AI Dr. Yaser bin Mohammed Al-Onaizan, representing SDAIA, and the General Manager of IBM Saudi Arabia, Fahad Alanazi, finalized the agreement.

The MoU aims to establish a specialized center of excellence for developing generative AI technologies, focusing on implementing innovative applications that meet the needs of government entities according to the best global standards and governance frameworks.

It also includes the launch of the ALLaM Challenge, which seeks to develop innovative solutions and stimulate innovation by developing and enhancing large language models (LLM) in Arabic using the ALLaM model.

This partnership is expected to contribute to the exchange of expertise and enhancement of national capabilities, supporting Saudi Vision 2030 goals of building a knowledge-based society and reinforcing the Kingdom's position as a global hub for advanced technologies.

This collaboration is part of SDAIA's efforts to position the ALLaM model as the leading generative Arabic model on global platforms, according to the Arabic MMLU benchmark. This initiative aims to empower developers and users of Arabic-language AI solutions in the Kingdom and worldwide.

SDAIA and IBM have previously announced that ALLaM will be hosted on the IBM Watsonx platform and the Saudi government cloud "DEEM". This initiative will provide entities with advanced and unique services, contributing to the advancement of technological innovation in the region.

SDAIA and IBM's collaboration also includes establishing a specialized center of excellence for developing generative AI technologies and launching the ALLaM Challenge, which aims to discover exceptional talents and expertise in AI.



Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
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Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo

Alphabet's Google has hired several key staff members from AI code generation startup Windsurf, the companies announced on Friday, in a surprise move following an attempt by its rival OpenAI to acquire the startup.

Google is paying $2.4 billion in license fees as part of the deal to use some of Windsurf's technology under non-exclusive terms, according to a person familiar with the arrangement. Google will not take a stake or any controlling interest in Windsurf, the person added.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and some members of the coding tool's research and development team will join Google's DeepMind AI division, Reuters reported.

The deal followed months of discussions Windsurf was having with OpenAI to sell itself in a deal that could value it at $3 billion, highlighting the interest in the code-generation space which has emerged as one of the fastest-growing AI applications, sources familiar with the matter told Reuters in June.

OpenAI could not be immediately reached for a comment.

The former Windsurf team will focus on agentic coding initiatives at Google DeepMind, primarily working on the Gemini project.

"We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding," Google said in a statement.

The unusual deal structure marks a win for backers for Windsurf, which has raised $243 million from investors including Kleiner Perkins, Greenoaks and General Catalyst, and was last valued at $1.25 billion one year ago, according to PitchBook.

Windsurf investors will receive liquidity through the license fee and retain their stakes in the company, sources told Reuters.

'ACQUIHIRE' DEALS

Google's surprise swoop mirrors its deal in August 2024 to hire key employees from chatbot startup Character.AI.

Big Tech peers, including Microsoft, Amazon and Meta, have similarly taken to these so-called acquihire deals, which some have criticized as an attempt to evade regulatory scrutiny.

Microsoft struck a $650 million deal with Inflection AI in March 2024, to use the AI startup's models and hire its staff, while Amazon hired AI firm Adept's co-founders and some of its team last June.

Meta took a 49% stake in Scale AI in June in the biggest test yet of this increasing form of business partnerships.

Unlike acquisitions that would give the buyer a controlling stake, these deals do not require a review by US antitrust regulators. However, they could probe the deal if they believe it was structured to avoid those requirements or harm competition. Many of the deals have since become the subject of regulatory probes.

The development comes as tech giants, including Alphabet and Meta, aggressively chase high-profile acquisitions and offer multi-million-dollar pay packages to attract top talent in the race to lead the next wave of AI.

Windsurf's head of business, Jeff Wang, has been appointed its interim CEO, and Graham Moreno, vice president of global sales, will be president, effective immediately.

The majority of Windsurf's roughly 250 employees will remain with the company, which has announced plans to prioritize innovation for its enterprise clients.