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Sunday, 12 August 2018

KSA’s investments in Silicon Valley have an “obvious potential for disaster”

US tech meets Saudi investments is an unholy alliance, says the FT: US tech companies accepting Saudi investments has an “obvious potential for disaster” thanks to the “glaring contradictions” in the two sides’ values, Tom Braithwaite writes for the Financial Times. Saudi Arabia has been quietly but steadily expanding its network of investments in Silicon Valley, while the companies on the receiving end of the cash seem to be shrugging off the risk of getting close with a regime with vastly different ideals, Braithwaite says. “When Uber gobbled up the first investment from the PIF, women were still barred from driving in the kingdom … Given this, the embrace of investment by Silicon Valley’s liberal elite might be their biggest act of hypocrisy yet.”

Problems with the analysis: We see numerous issues with the analysis here that we cannot help but bring up. First off, US tech isn’t the only one doing business with KSA, so we are forced to ask, where does the buck ultimately stop. Second, anyone following Uber and Facebook for the last year can tell you that these tech companies are far from the idyllic organizations they claim to be. So if anything, the piece ought to attack the holier than thou attitude and values of tech companies.

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