Gulf States Rise as AI’s New Power Brokers
From Oil to Algorithms
Once known for their oil wealth, Persian Gulf nations such as the United Arab Emirates and Saudi Arabia are reinventing themselves as global AI powerhouses. Backed by billions in sovereign wealth, these nations are capitalizing on both financial muscle and strategic geography to attract partnerships with top U.S. and Chinese AI firms. With access to massive data repositories, computational resources, and a top-down political mandate for tech innovation, they’ve turned into critical players in a digital arms race. Artificial intelligence is emerging as the new oil, and the Gulf is positioning itself as a vital supplier of infrastructure, investment, and influence.
The Politics Behind the Processing Power
Former President Donald Trump’s recent visit to the region highlights just how intertwined AI ambitions are with broader political strategy. Gulf countries are leveraging their neutrality between the U.S. and China to court both sides, making them indispensable intermediaries and investors in AI development. Saudi Arabia’s fund has already poured millions into chipmaker Cerebras, while the UAE’s G42 has partnered with Silicon Valley AI firms. But the geopolitical balancing act is delicate: U.S. lawmakers are increasingly wary of Chinese access to advanced AI, prompting complex behind-the-scenes maneuvering to keep allies—and algorithms—aligned to American interests.
