Who really decides which AI startups scale?

Who really decides which AI startups scale?

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At DeepFest, we’ve met countless AI founders with incredible ideas and capable teams – but if they don’t have access to affordable compute, enterprise partners, and regulatory clarity, it’s very difficult to get ideas off the ground. 

That’s why AI accelerators and incubators have become so important in the AI space, both in Saudi Arabia and around the world. Not just mentorship programmes or demo-day factories, they give startups gateways to infrastructure and capital. And in doing so, they’re increasingly influencing which AI companies scale, and how

Today we’re talking about the recent evolution of some of those programmes, and why they’re important for founders, investors, and the region’s AI trajectory. 

Saudi Arabia’s AI incubator push 

In 2025, Saudi Arabia moved decisively from AI ambition to execution by launching AI-specific incubation infrastructure under the Ministry of Communications and Information Technology’s entrepreneurship arm, CODE.

One flagship programme supports 20 AI-focused startups, providing structured mentorship, technical support, and access to a broader innovation network. The aim isn’t just experimentation, but commercial readiness – helping founders move from prototype to deployable product.

The intent behind this programme is important. It marks a shift towards building domestic AI capability, rather than relying solely on imported technology or external platforms. For early-stage founders, national incubators increasingly function as first validation layers – and for investors, as early filters for quality and seriousness.

Hybrid acceleration: AIM-X and the rise of structured AI pipelines

Alongside government-led incubators, Saudi Arabia has embraced hybrid accelerator models that blend international experience with national priorities.

AIM-X, led by SparkLabs under the National Technology Development Programme’s AI.M initiative, is a great example of this. Rather than offering blanket funding to all participants, AIM-X is structured so programme graduates may receive USD $200,000 for up to 6% equity, alongside deep-tech mentorship and market access.

This model reflects a wider recalibration in AI acceleration: capital is still important, but it’s increasingly conditional on execution and readiness. 

For founders, the message is that accelerators are no longer just entry points, but selective pipelines. For investors, they represent a more disciplined way to identify AI startups that can survive beyond early hype.

When platforms step in: Google’s AI First accelerator

Big tech platforms are playing a more active role in shaping AI startup ecosystems too – particularly where infrastructure costs remain a barrier.

Google’s AI First Accelerator continues to run equity-free, ten-week programmes for Seed to Series A AI startups across the Middle East, North Africa and Türkiye. Participants get access to technical mentorship and platform resources designed to help teams scale responsibly.

We don’t think it’s the absence of equity requirements that makes this programme significant, but the focus on infrastructure and expertise rather than capital alone. In AI, access to tooling and guidance can be just as decisive as funding – especially in regions where compute and talent remain unevenly distributed.

Ecosystems, not cohorts: Hub71’s regional clue 

Beyond Saudi Arabia, Abu Dhabi’s Hub71 offers a glimpse into where AI acceleration may be heading next.

In its most recent cohort, Hub71 selected 26 startups, with 81% classified as AI-driven. Collectively, those companies had already raised over $223 million – showing the pipeline entering the programme is already mature

And Hub71’s model goes beyond a fixed-term accelerator. It combines incentives of up to AED 500,000, long-term ecosystem support, and partnerships with global tech firms – positioning itself as an ongoing AI launchpad rather than a temporary boost.

For founders weighing regional expansion, this ecosystem-first approach could be more valuable (especially long-term) than traditional accelerator formats. For investors, it concentrates deal flow, talent, and infrastructure in a single environment.

Cross-border momentum is building

In late 2025, signs began to suggest that the Middle East’s AI acceleration story is entering a new phase. 

International programmes, including India Accelerator, announced expansion into Saudi Arabia – backed by a $15 million fund aimed at helping startups scale into the country, with first cohorts scheduled for 2026.

This is one of an ever-growing number of examples showing that AI acceleration in the region is not inward-looking. It’s becoming a node in global startup and investment networks – attracting founders, capital, and now programmes from outside the region.

We want to know what you think 

As we move through 2026, we’ll be watching closely to see how AI accelerators here produce globally competitive startups; and how regulation and data access evolves alongside those acceleration efforts. 

AI accelerators are deciding who gets access, and who gets traction. 

But we want your perspective: how important are AI accelerators and incubators in Saudi Arabia and the Middle East – and what programmes are you most excited about? 

Open this newsletter on LinkedIn and share your perspective. 

We’ll meet you in the comments section – and see you back here in your inbox next week.

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