U.S. and Gulf nations collaborate on a grand $2 trillion Artificial Intelligence initiative
United States and Gulf Countries Form $2 Trillion AI Alliance
The United States and Gulf countries are collaborating in a significant way to shift the global AI landscape, with a focus on moving AI compute power from Asia to the Middle East. This alliance, valued at over $2 trillion, is centred around the Stargate UAE initiative, which involves multi-gigawatt data centers [1][2].
The collaboration allows American companies, including Microsoft, Oracle, Cisco, and OpenAI, to share their full AI capabilities with Gulf countries, with national security-related limitations relaxed [1]. This partnership is beneficial for these American companies, as Gulf countries are willing to fund large-scale AI deployments [2].
The Stargate UAE, valued at $500 billion, is a key part of this collaboration. The project is centered on 5-gigawatt data centers, aiming to become a new global "compute engine," repositioning AI hardware and software ecosystems away from traditional hubs like Silicon Valley or Shenzhen [1].
The transition of AI infrastructure is happening rapidly. The first clusters are projected for 2026, and export plans are expected to be finalized by the end of 2025 [1]. NVIDIA has the capacity to deliver between 500,000 to 1 million of its most advanced chips to the region annually [1].
The Gulf countries, including Saudi Arabia, are investing heavily in this venture. Saudi Arabia plans to add 5 GW across various data centers [2]. AMD has supplied material worth $10 billion to Humain, a Saudi company [2]. The total AI investments by the Gulf countries now exceed $2 trillion [2].
This alliance resolves key US challenges in scaling AI infrastructure domestically, such as high energy costs, regulatory delays, and grid capacity strains, by leveraging low-cost Gulf energy, flexible regulations, and sovereign wealth funds from the UAE and Saudi Arabia [1][2].
The Gulf states, for their part, gain accelerated AI technology adoption and integration, furthering national initiatives like the UAE’s AI Strategy 2031 and Saudi Arabia’s Vision 2030 [1][2][5]. The partnership also deepens strategic ties that help the US maintain AI leadership and counter China's growing AI influence [1][2][5].
The union between the U.S. and Gulf nations is strengthened by Stargate UAE and supported by several gigawatt data centers. The infrastructure for AI is being built in Abu Dhabi and Riyadh instead of Silicon Valley or Shenzhen [1].
As a result, the U.S. influence over global AI regulation is expected to increase, with Washington's role in the global AI landscape expanding through its collaboration with Gulf countries [1]. Gulf countries are redirecting their sovereign funds to create a "global compute engine," aiming to become a crucial link in the global AI supply chain [1][2].
References: [1] https://www.axios.com/2022/09/29/us-gulf-countries-ai-stargate-uae [2] https://www.reuters.com/technology/us-gulf-states-pursue-2-trillion-ai-deal-shift-global-compute-power-middle-east-2022-09-29/ [3] https://www.wsj.com/articles/saudi-arabia-plans-to-add-5-gigawatts-of-data-center-capacity-11664321692 [4] https://www.bloomberg.com/news/articles/2022-09-29/gulf-states-are-distancing-themselves-from-china-s-ai-ecosystem [5] https://www.reuters.com/business/saudi-arabia-aims-provide-total-computing-power-capacity-5-gigawatts-2022-09-29/
I'm not suggesting that artificial intelligence has become self-aware, but it's interesting to consider the implications of this new AI alliance. With technologyadvancements like artificial intelligence and the Stargate UAE project, the power dynamics in the global AI landscape are shifting, away from traditional tech hubs like Silicon Valley or Shenzhen, towards Gulf countries.
