Silicon Valley's Saudi Arabia Problem

An anonymous reader shares a report: Somewhere in the United States, someone is getting into an Uber en route to a WeWork co-working space. Their dog is with a walker whom they hired through the app Wag. They will eat a lunch delivered by DoorDash, while participating in several chat conversations on Slack. And, for all of it, they have an unlikely benefactor to thank: the Kingdom of Saudi Arabia. Long before the dissident Saudi journalist Jamal Khashoggi vanished, the kingdom has sought influence in the West -- perhaps intended, in part, to make us forget what it is. A medieval theocracy that still beheads by sword, doubling as a modern nation with malls (including a planned mall offering indoor skiing), Saudi Arabia has been called 'an ISIS that made it.' Remarkably, the country has avoided pariah status in the United States thanks to our thirst for oil, Riyadh's carefully cultivated ties with Washington, its big arms purchases, and the two countries' shared interest in counterterrorism. But lately the Saudis have been growing their circle of American enablers, pouring billions into Silicon Valley technology companies. While an earlier generation of Saudi leaders, like Prince Alwaleed bin Talal, invested billions of dollars in blue-chip companies in the United States, the kingdom's new crown prince, Mohammed bin Salman, has shifted Saudi Arabia's investment attention from Wall Street to Silicon Valley. Saudi Arabia's Public Investment Fund has become one of Silicon Valley's biggest swinging checkbooks, working mostly through a $100 billion fund raised by SoftBank (a Japanese company), which has swashbuckled its way through the technology industry, often taking multibillion-dollar stakes in promising companies. The Public Investment Fund put $45 billion into SoftBank's first Vision Fund, and Bloomberg recently reported that the Saudi fund would invest another $45 billion into SoftBank's second Vision Fund. SoftBank, with the help of that Saudi money, is now said to be the largest shareholder in Uber. It has also put significant money into a long list of start-ups that includes Wag, DoorDash, WeWork, Plenty, Cruise, Katerra, Nvidia and Slack. As the world fills up car tanks with gas and climate change worsens, Saudi Arabia reaps enormous profits -- and some of that money shows up in the bank accounts of fast-growing companies that love to talk about 'making the world a better place.'

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