Ex-Scale AI founder raises $9M for MENA’s critical AI

Bilal Abu-Ghazaleh, a former Scale AI executive, has successfully secured $9 million in seed funding for his new venture, 1001 AI, which focuses on developing advanced AI infrastructure tailored for critical industries throughout the Middle East and North Africa. The funding round was spearheaded by prominent investors CIV, General Catalyst, and Lux Capital, with additional support from a diverse group of global and regional angel investors.

Having recently relocated to London while maintaining a presence in Dubai, Abu-Ghazaleh brings nearly a decade of U.S. experience, including key roles at Scale AI, to address what he identifies as massive inefficiencies in high-stakes sectors. His startup aims to deploy an AI-native operating system designed to enhance decision-making in fields such as aviation, logistics, and oil and gas. According to the founder, inefficiencies in the Gulf’s top industries, including airports, ports, construction, and energy, represent a financial drain exceeding $10 billion, presenting a substantial opportunity for technological intervention.

The potential impact is considerable. For instance, streamlining airport operations can generate compounded savings benefiting both the facilities and their airline partners. Abu-Ghazaleh also highlighted that a vast majority of the region’s large-scale projects face delays or budget overruns, meaning even modest efficiency gains could translate into significant cost reductions. 1001 AI is currently in discussions with major construction firms and airports across the Gulf as it prepares to launch its inaugural product by year-end.

Abu-Ghazaleh’s professional journey includes moving from Jordan to the United States for university, followed by immersion in the Bay Area startup ecosystem. He initially worked in a product capacity at Hive AI, a computer vision startup, before joining Scale AI in 2020. During his tenure there, he advanced from an operations associate to director of generative AI operations, where he was instrumental in expanding the contributor network responsible for data annotation and labeling. A planned transition into Scale’s international public sector unit was interrupted when Meta’s investment prompted a strategic shift, leading Abu-Ghazaleh to depart and establish 1001 AI.

The Gulf region, especially the UAE and Saudi Arabia, has emerged as one of the world’s most enthusiastic adopters of artificial intelligence. Governments are channeling billions into local AI infrastructure and talent acquisition through initiatives like Abu Dhabi’s G42 and Saudi Arabia’s National Center for AI. Abu-Ghazaleh sees this convergence of ambition, financial resources, and pressing need as an ideal environment for testing and scaling AI solutions. Unlike many AI startups that concentrate on software or enterprise tools, 1001 AI is dedicated to optimizing physical operations, a domain where investors see exceptional potential in the Middle East.

Deena Shakir, a partner at Lux Capital, expressed strong confidence in AI applications that tackle physical-world challenges at scale, such as improving flight turnaround times at airports, cargo movement at ports, and on-site operations at construction projects. She pointed to the MENA region’s mission-critical infrastructure, which remains under-digitized and ready for transformation, as a particularly promising landscape.

Although the product is still in development, Abu-Ghazaleh provided insight into its functionality. The system integrates data from a client’s existing software, models their operational workflows, and delivers real-time directives to boost efficiency. He illustrated how an operations manager currently might make manual phone calls to reroute a fuel truck or dispatch a cleaning team, whereas 1001 AI’s platform automates this orchestration. By leveraging live data, the AI can reroute vehicles, reassign personnel, and adjust operational plans autonomously.

A distinguishing feature of 1001 AI is its cross-industry applicability. While many early-stage AI firms concentrate on niche sectors, Abu-Ghazaleh asserts that operational workflows often share common structures across different fields, enabling broader adoption. The company’s approach incorporates elements from consulting and contract work, with teams spending several weeks on-site with clients conducting co-development sprints to customize systems according to specific operational realities.

Neeraj Arora, Managing Director at General Catalyst, praised Abu-Ghazaleh for building a decision engine capable of automating complex processes, combining execution expertise honed at Scale with the regional influence needed to establish 1001 AI as the foundational platform for the market.

The newly acquired capital will be used to accelerate early deployments in aviation, logistics, and infrastructure. It will also support recruitment efforts across engineering, operations, and go-to-market functions as the company expands its teams in Dubai and London. 1001 AI intends to launch its first customer deployment in the construction sector before the end of the year. Looking ahead, Abu-Ghazaleh envisions the company becoming the Gulf’s primary orchestration layer for these essential industries over the next five years, with global expansion to follow.

(Source: TechCrunch)