What To Know
- Mr Soliman from the Middle East Institute framed the deals as a calculated move to align the Gulf with the “Team America AI” ecosystem — referring to the US-dominated AI pipeline of chips, infrastructure, models, and software.
- With the US gaining a powerful ally in the global tech contest and Gulf states inching closer to a post-oil economic model, the partnership represents a mutual leap toward a data-driven future.
AI News: Trump Visit Sparks AI Ambitions in the Desert
When former US President Donald Trump landed in the United Arab Emirates earlier this year, he brought more than just political theater. The headline-grabbing trip marked a pivotal moment in the Gulf’s ambition to become a global artificial intelligence powerhouse. The centerpiece of the visit was the unveiling of a colossal AI infrastructure hub — touted as the largest outside the United States — developed under a UAE-US partnership.
Countries in the Middle-East are investing heavily in the AI industry
image credit: Ai-Generated
This AI News report highlights how the strategic shift was further underscored by Washington’s move to ease export restrictions on advanced Nvidia microchips to both the UAE and Saudi Arabia. The message was clear — the Gulf, with its deep pockets and geopolitical clout, is now considered a vital partner in America’s evolving technological alliances. For Gulf leaders, AI offers a futuristic path away from economic reliance on oil, with data centers, semiconductors, and sovereign investments replacing pipelines and rigs.
The New Oil is Compute
In this new economic blueprint, the concept of “compute” — the processing power behind artificial intelligence models — has become the hot commodity. “Compute is the new oil,” says Mohammed Soliman from the Middle East Institute in Washington DC. And Gulf countries are drilling deep into this metaphor by investing in massive data infrastructure. Abu Dhabi’s “Stargate” project is emblematic of this push, backed by G42, a UAE-linked tech firm, and outfitted with Nvidia’s cutting-edge chips. G42 is partnering with American tech leaders like Cisco and Oracle, and Japan’s SoftBank to bring the first phase to life.
Khazna, the country’s largest data center operator, is spearheading construction. CEO Hassan Alnaqbi likens this moment to how Emirates Airline transformed Dubai into a global travel hub. Now, the ambition is to position the UAE as a digital and AI nerve center for the world.
Saudi Arabia and the Rise of AI Factories
Not to be outdone, Saudi Arabia’s Public Investment Fund (PIF) has launched its own national AI company, Humain. Over the next five years, the Kingdom plans to build massive AI factories using hundreds of thousands of Nvidia chips. Meanwhile, the UAE’s sovereign wealth fund Mubadala is backing G42, MFX — a $100 billion AI-centric venture — and other homegrown initiatives with support from Microsoft.
However, this exponential growth faces a talent bottleneck. The Gulf’s relatively small population and lack of established AI research ecosystems pose obstacles. In response, nations like the UAE are offering golden visas, light-touch regulations, and tax perks to attract global AI experts. Still, the region is yet to produce an OpenAI or DeepSeek-level name — a milestone that could cement its place on the global AI map.
Geopolitics Enters the AI Arena
Trump’s visit also hinted at a recalibration of US-Gulf ties, moving from the traditional oil-for-security model to one rooted in tech, energy, and strategic alignment. As the UAE scales back Chinese-backed projects and distances itself from Huawei, it’s clear that AI has become a geopolitical battleground. Mr Soliman from the Middle East Institute framed the deals as a calculated move to align the Gulf with the “Team America AI” ecosystem — referring to the US-dominated AI pipeline of chips, infrastructure, models, and software.
Still, questions remain. Despite the enthusiasm, the Stargate project is reportedly awaiting US security clearance due to concerns about potential Chinese involvement. Yet industry insiders expect the project to proceed, reflecting a growing consensus: both the US and the Gulf need each other to outpace China in the AI arms race.
A Strategic Symbiosis with Global Stakes
For now, the Gulf’s bet on AI seems poised to pay dividends. With the US gaining a powerful ally in the global tech contest and Gulf states inching closer to a post-oil economic model, the partnership represents a mutual leap toward a data-driven future. As Mr Soliman warns, China is catching up fast. But for now, the Gulf is throwing its lot in with Washington — and putting AI at the center of its 21st-century vision.
The Gulf’s AI push is not just about machines and models. It is a seismic economic and geopolitical shift, fueled by ambition, capital, and strategic alignment. If successful, the Gulf may soon be known not just for its oil wealth, but for its compute power — rewriting its place in the global hierarchy from resource hub to digital supernode. For the latest on the AI Industry in the Middle-East, keep on logging to Thailand AI News.
