AI startup 1001 has raised $30 million from investors including US venture firm Lux Capital and Saudi sovereign wealth fund unit Sanabil, as it looks to use AI to boost the efficiency of the region’s aviation, ports, and energy infrastructure.
The funding round was led by Lux, with participation from 9Yards, Hanabi, and Sanabil. General Catalyst and CIV are also investors in the company.
The Iran war had “zero impact” on fundraising discussions, Bilal Abu-Ghazaleh, founder and CEO of 1001, told Semafor. The conflict has also driven more firms to look for ways to use AI to help build new supply chains and lower costs at a time when the region is looking to diversify away from a reliance on the Strait of Hormuz, he said.
1001 plans to work with the Gulf’s airlines, port operators, and shipping companies, temporarily embedding engineers in their offices to help fix operational problems and develop new AI-enabled products. Abu-Ghazaleh said governments across the region are pushing businesses to adopt the technology, creating an opening for startups that are focused on practical applications.
“The Middle East is not necessarily going to compete in terms of frontier models, but in terms of applied AI, it’s a bit of a green space,” said Abu-Ghazaleh.