The Public Investment Fund (PIF) said in a statement its chairman, de facto ruler Crown Prince Mohammed bin Salman, launched HUMAIN to "operate and invest across the artificial intelligence (AI) value chain".

The announcement comes on the eve of Trump's arrival on the first stop of a Gulf tour during which artificial intelligence is expected to play a central role at a joint Saudi-US investment forum in Riyadh.

The PIF statement said the new company would provide a wide range of AI services, products and tools.

"The company will also offer one of the world's most powerful multimodal Arabic large language models (LLMs)," it said.

The Gulf powerhouse is positioning itself as a global hub for AI, a market currently dominated by the United States.

The technology is a priority in Saudi Arabia's ambitious "Vision 2030" reform plan aimed at diversifying the economy of the world's largest oil exporter for a potential future without oil.

Chief among an array of flashy projects are NEOM -- a $500-billion futuristic new city in the desert -- as well as the 2034 football World Cup and a major new airport for Riyadh.