Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company's global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a$500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a$13.8 billion valuation last year after a$1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about$870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump's upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf's access to cutting-edge technology.

Notably, Scale AI's former managing director, Michael Kratsios, now advises Trump on tech matters.

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