Scale AI Alum Secures $9M to Serve MENA Industries with AI

Bilal Abu-Ghazaleh and the Launch of 1001 AI

Bilal Abu-Ghazaleh recently relocated to London, dividing his time between the UK and Dubai.

Following a decade of experience in the United States, including a period with Scale AI, he is now focused on a new endeavor: 1001 AI. This company is dedicated to developing AI infrastructure for vital industries throughout the Middle East and North Africa (MENA) region.

Seed Funding and Key Investors

The startup has successfully secured $9 million in seed funding. This round was spearheaded by CIV, General Catalyst, and Lux Capital.

Additional investors include prominent figures from both global and regional spheres, such as Chris Ré, Amjad Masad (Replit), Amira Sajwani (DAMAC), Khalid Bin Bader Al Saud (RAED Ventures), and Hisham Al-Falih (Lean Technologies).

Addressing Inefficiencies with AI

Abu-Ghazaleh asserts that his company, only two months old, aims to diminish inefficiencies within critical sectors like aviation, logistics, and oil and gas.

This will be achieved through an AI-native operating system designed for optimized decision-making.

According to the founder and CEO, inefficiencies within the Gulf region’s top industries – including airports, ports, construction, and oil and gas – exceed $10 billion. This figure represents a substantial opportunity, even when considering only the UAE, Saudi Arabia, and Qatar.

Compounding Savings and Project Efficiency

Improvements in airport operations, for instance, can generate compounded savings for both the airport itself and the airlines it serves.

Furthermore, Abu-Ghazaleh notes that a significant proportion – nine out of ten – of the region’s large-scale projects experience delays or budget overruns. Even marginal gains in efficiency can result in considerable cost savings for these projects.

Product Launch and Client Engagement

The company intends to market its AI-driven decision-making system to new projects following the launch of its initial product, anticipated by the end of the current year.

1001 AI is currently engaged in discussions with some of the largest construction companies and airport authorities in the Gulf region.

Abu-Ghazaleh’s Background and Experience

Originally from Jordan, Abu-Ghazaleh pursued higher education in the U.S. before becoming involved in the Bay Area’s startup ecosystem.

He began his career with a product role at the computer vision startup Hive AI, and subsequently joined Scale AI in 2020.

At Scale AI, he progressed from operations associate to director of generative AI operations, overseeing the expansion of its contributor network responsible for data annotation and labeling.

Transition to Founding 1001 AI

Abu-Ghazaleh was preparing to transition to Scale’s international public sector unit, focused on developing AI solutions for foreign governments.

However, following Meta’s investment in Scale, the company altered its strategic direction, prompting Abu-Ghazaleh to establish 1001 AI.

The Gulf Region as an AI Hub

The Gulf region, particularly the UAE and Saudi Arabia, has emerged as a global leader in AI adoption.

Government-backed initiatives, such as G42 in Abu Dhabi and Saudi Arabia’s National Center for AI, are driving substantial investments in local AI infrastructure and talent acquisition.

A Prime Testing Ground for AI Innovation

Abu-Ghazaleh believes the region’s combination of strong appetite, substantial budgets, and a sense of urgency makes it an ideal environment for testing and refining AI solutions.

Unlike many AI startups concentrating on software or enterprise tools, 1001 AI focuses on real-world physical operations, an area where investors foresee even greater potential within the Middle East.

Investor Perspective on Physical-World AI

Deena Shakir, partner at Lux Capital, expressed strong support for AI solutions addressing physical-world challenges at scale.

She highlighted the optimization of airport flight turnaround times, port cargo movement, and construction site operations as key areas of focus.

Shakir also emphasized the significant potential within the MENA region, citing under-digitized, mission-critical infrastructure as ripe for transformation.

How the AI System Operates

While still in development, Abu-Ghazaleh provided insight into the system’s functionality.

It integrates with a client’s existing software, models operational workflows, and delivers real-time instructions to enhance efficiency.

Currently, operational managers often rely on manual communication to reroute vehicles or assign cleaning crews. The AI system automates this orchestration, utilizing real-time data to optimize resource allocation without human intervention.

Scalability and Industry Agnostic Approach

Abu-Ghazaleh suggests that 1001 AI’s model is broadly applicable across various industries due to the commonalities in operational flows.

The company employs a rigorous approach, similar to consulting and contract work, involving weeks of on-site collaboration with clients through co-development sprints to customize the system to their specific needs.

Industry Validation and Future Plans

Neeraj Arora, managing director at General Catalyst, commented on Abu-Ghazaleh’s capabilities, stating he is “building the decision engine to automate that complexity with Scale-proven execution and the regional gravity to make 1001 the platform this market builds on.”

The new funding will be used to accelerate deployments in aviation, logistics, and infrastructure, as well as to expand the team across Dubai and London with hires in engineering, operations, and go-to-market roles.

The startup anticipates its first customer deployment by the end of the year, beginning with a construction project. Over the next five years, Abu-Ghazaleh aims to establish 1001 AI as the leading orchestration layer for these industries in the Gulf region, with plans for subsequent global expansion.