America’s AI controls risk stalling the Gulf’s billion-dollar vision

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America’s AI controls risk stalling the Gulf’s billion-dollar vision

America’s AI controls risk stalling the Gulf’s billion-dollar vision
US National Security Adviser Jake Sullivan talks about AI during a news briefing on Jan. 13, 2025 in Washington. (AFP)
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The US government’s new controls on artificial intelligence chips arrive at a peculiar moment for the Gulf. The region has committed billions to becoming a global AI hub, yet Washington’s latest policy effectively tells it to wait its turn.

The framework announced this week relegates most of the world — including the Gulf states — to a secondary tier, permitted to purchase only 50,000 advanced AI chips annually. Meanwhile, 18 privileged nations, mostly close US allies, enjoy unlimited access.

This arbitrary ceiling comes just as the region’s universities, research centers, and sovereign wealth funds are making unprecedented investments in AI infrastructure.

The oversight appears particularly shortsighted given the Gulf’s strategic advantages. Saudi Arabia, for example, with vast land availability and energy costs at about $0.048 per kilowatt-hour — a fraction of Western rates — is perfectly positioned to become a global hub for AI data centers.

First-mover advantage in this critical 21st century infrastructure could prove more valuable than unrestricted chip access.

Consider the scale of investment. Saudi Arabia and the UAE have emerged as two of the world’s most ambitious investors in AI infrastructure. The UAE has built 235 megawatts of data center capacity, while Saudi Arabia has reached 123 megawatts. These are not speculative ventures — they represent serious, long-term commitments to becoming global AI hubs.

The quality of these investments is as significant as their scale. The recent partnership between Saudi Arabia’s Public Investment Fund and Google Cloud to create a new global AI hub demonstrates the sophistication and forward-looking nature of Gulf AI initiatives.

Similarly, Saudi Arabia’s collaboration with US-based Groq to build the world’s largest specialized AI data center shows a very clear preference for working with American technology leaders.

But perhaps the outgoing Biden administration has left the door ajar. These controls come with a 120-day implementation window — leaving plenty of time for the new administration to reassess its approach to America’s key Gulf allies.

Besides, recent developments in China offer a lesson in how technology restrictions can have unintended consequences. Despite facing the strictest US controls, Chinese AI startup DeepSeek has made remarkable progress. Its latest large language model approaches Western capabilities, all while using just a 10th of the computational resources, a feat accomplished through clever mathematics rather than raw processing power.

Saudi Arabia’s collaboration with US-based Groq to build the world’s largest specialized AI data center shows a very clear preference for working with American technology leaders.

Adrian Monck

This breakthrough should be on the radar of every country facing these new restrictions. DeepSeek’s achievement suggests that the path to AI leadership may not run through hardware dominance after all. Its team improved chip efficiency by 60 percent in six months when faced with hardware limitations. Innovation, it seems, is still possible under constraint.

The timing is particularly relevant for the Gulf. The region’s advantages are clear. It has emerging world-class universities — like Saudi Arabia’s King Abdullah University of Science and Technology and the UAE’s Mohamed bin Zayed University of Artificial Intelligence — significant capital resources, and growing pools of young, technical talent.

These may ultimately prove to be the long-term formula for AI success. If algorithmic innovation, rather than graphics processing unit brute force, will shape AI’s future, then investments in education and research will take on even greater importance.

DeepSeek developed its latest model for just $6 million — “a joke” according to OpenAI’s Andrej Karpathy — while Western tech giants spend hundreds of millions on similar projects. An efficiency-first approach aligns naturally with the region’s emphasis on sustainable technological development.

The US strategy seems predicated on an outdated notion of technological development — that controlling hardware access ensures controlling outcomes. Yet history suggests otherwise.

The Soviet space program achieved remarkable successes despite enormous technological restrictions, compensating through innovation. Ancient China’s attempts to restrict access to silk production technology met with failure.

Recent breakthroughs underline the stakes. OpenAI’s latest model scored 88 percent on complex reasoning tests, whereas previous systems managed just 5 percent, suggesting we are entering a critical phase in AI development. Its CEO Sam Altman believes artificial general intelligence — systems matching human capabilities — could emerge within four years.

This timeline makes the current administration’s attempt to create a hierarchical “AI world order” particularly short-sighted. Subordinating the region’s technological sovereignty to an arbitrary quota system, especially as it invests heavily in developing domestic AI capabilities, seems almost designed to alienate friends.

A more constructive approach would recognize that states like Saudi Arabia and the UAE are not just seeking to acquire AI capabilities — they’re building comprehensive AI ecosystems that could complement and strengthen US leadership in this critical technology. Their combination of capital, strategic vision, and commitment to working with Western partners makes them ideal partners in expanding the reach of responsible AI development.

The incoming Trump administration has an opportunity to recalibrate this policy. Rather than maintaining restrictions that complicate natural technological partnerships, a revised approach could focus on deepening collaboration with serious, well-resourced partners. The administration’s emphasis on deal-making and economic engagement suggests it would recognize the strategic value of such cooperation.

Adrian Monck is a senior adviser at the Mohamed bin Zayed University of Artificial Intelligence and authors the geopolitics newsletter, Seven Things.


 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Syria rights groups slam government over justice workshop ban

Syria rights groups slam government over justice workshop ban
Updated 4 min 22 sec ago
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Syria rights groups slam government over justice workshop ban

Syria rights groups slam government over justice workshop ban
  • “The abrupt decision to ban the holding of this meeting... constitutes a flagrant violation of fundamental rights,” the groups said
  • “It reminds us of the conditions we lived under before the victory of Dec. 8“

DAMASCUS: Human rights groups in the Syrian Arab Republic have condemned the last minute banning of a justice workshop they had planned to hold in Damascus, accusing the country’s transitional government of obstructing accountability.
Justice for the victims of crimes committed during the civil war which broke out in 2011 is one of the key issues facing Syria after Islamist-led rebels finally toppled longtime strongman Bashar Assad in December.
“The abrupt decision to ban the holding of this meeting... constitutes a flagrant violation of fundamental rights,” the groups said in a joint statement on Thursday.
“This arbitrary measure reflects an approach which undermines the principles of transparency and participation, and threatens the chances of delivering justice.
“It reminds us of the conditions we lived under before the victory of Dec. 8.”
An array of former members of Assad’s government and security forces have been accused of war crimes but allegations have also been made against the rebel groups who toppled him late last year.
“It’s possible that some officials considered that the presence of non-governmental organizations which documented the crimes and abuses that were perpetrated in Syria, and not just by the regime, risked one day putting them in a position where they would face accusations,” the rights groups said.
An official in Syria’s interim government said the foreign ministry would publish an explanation of the decision later.
The rights groups which had been due to take part in the workshop include the Caesar Files for Justice, the Syrian Archive, the Al Share’ Media Foundation and the Syrian Center for Legal Studies and Research.


Pope has coffee, rests after setback in recovery

Pope has coffee, rests after setback in recovery
Updated 16 min 35 sec ago
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Pope has coffee, rests after setback in recovery

Pope has coffee, rests after setback in recovery
  • Doctors said it would take a day or two to evaluate how and if the Friday afternoon episode impacted Francis’ overall clinical condition
  • His prognosis remained guarded, meaning he wasn’t out of danger

ROME: Pope Francis had coffee and was reading newspapers Saturday after an alarming setback in his two-week recovery from double pneumonia.
Doctors had to put him on noninvasive mechanical ventilation following a coughing fit in which he inhaled vomit that needed to then be extracted.
Doctors said it would take a day or two to evaluate how and if the Friday afternoon episode impacted Francis’ overall clinical condition. His prognosis remained guarded, meaning he wasn’t out of danger.
In its morning update Saturday, the Vatican said the 88-year-old pope didn’t have any further respiratory crises overnight: “The night has passed quietly, the pope is resting.” He had coffee in the morning for breakfast, suggesting that he was not dependent on a ventilation mask to breathe and was still eating on his own.
In the late Friday update, the Vatican said Francis suffered an “isolated crisis of bronchial spasm,” a coughing fit in which Francis inhaled vomit, that resulted in a “sudden worsening of the respiratory picture.” Doctors aspirated the vomit and placed Francis on noninvasive mechanical ventilation.
The pope remained conscious and alert at all times and cooperated with the maneuvers to help him recover. He responded well, with a good level of oxygen exchange and was continuing to wear a mask to receive supplemental oxygen, the Vatican said.
The episode, which occurred in the early afternoon, marked a setback in what had been two successive days of increasingly upbeat reports from doctors treating Francis at Rome’s Gemelli hospital since Feb. 14. The pope, who had part of one lung removed as a young man, has lung disease and was admitted after a bout of bronchitis worsened and turned into pneumonia in both lungs.
Doctors say the episode is alarming
The Vatican said the episode was different from the prolonged respiratory crisis on Feb. 22, that was said to have caused Francis discomfort.
Dr. John Coleman, a pulmonary critical care doctor at Northwestern Medicine in Chicago, said the isolated episode Friday as relayed by the Vatican was nevertheless alarming and underscored Francis’ fragility and that his condition “can turn very quickly.”
“I think this is extremely concerning, given the fact that the pope has been in the hospital now for over two weeks, and now he’s continuing to have these respiratory events and now had this aspiration event that is requiring even higher levels of support,” he told The Associated Press.
“So given his age and his fragile state and his previous lung resection, this is very concerning,” added Coleman, who is not involved in Francis’ care.
Dr. William Feldman, a pulmonary specialist at Brigham and Women’s Hospital in Boston, said it was a good sign that the pope remained alert and oriented during the episode, but concurred that it marked “a worrying turn.”
“Often we will use noninvasive ventilation as a way of trying to stave off an intubation, or the use of invasive mechanical ventilation,” Feldman said.
Types of noninvasive ventilation include a BiPAP machine, which helps people breathe by pushing air into their lungs. Doctors will often try such a machine for a while to see if the patient’s blood gas levels improve so they can eventually go back to using oxygen alone. Friday’s statement said Francis showed a “good response” to the gas exchange using the ventilation.
Doctors did not resume referring to Francis being in “critical condition,” which has been absent from their statements for three days now. But they say he isn’t out of danger, given the complexity of his case.
Prayers continued to pour in
Francis’ hospitalization has come as the Vatican is marking its Holy Year that is drawing pilgrims to Rome from all over. They are walking through the Holy Door at St. Peter’s Basilica and also making pilgrimages to the hilltop Umbrian town of Assisi, to pray at the home of Francis’ namesake, St. Francis.
“Every day we’re praying for the pope,” said the Rev. Jacinto Bento, a priest visiting Assisi on Saturday with a group of 30 Jubilee pilgrims from the Azores Islands. “We’re very sad for his situation.”
Veronica Abraham, a catechist and Argentine native, came to Assisi on Saturday with her two children and other kids from her parish on Lake Garda and said the group had prayed for the pope at every church they’d visited.
“I’m sure that he’s hearing our prayers, that he feels our closeness,” she said.
Serena Barbon, visiting Assisi from Treviso on Saturday with her husband and three children, said she hoped that if Francis doesn’t make it, the next pope will be just like him.
“He’s been very charismatic and we pray for him and that any new pope might also be someone who puts the poor in the center. Because we’re all a bit the poor,” she said.


Russia says Zelensky trip to US was ‘complete failure’

Russia says Zelensky trip to US was ‘complete failure’
Updated 11 min 9 sec ago
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Russia says Zelensky trip to US was ‘complete failure’

Russia says Zelensky trip to US was ‘complete failure’
  • “The visit of the head of the neo-Nazi regime, V. Zelensky, to Washington on February 28 is a complete political and diplomatic failure of the Kyiv regime,” Zakharova said
  • Moscow often accuses Ukraine of harboring “neo-Nazism“

MOSCOW: Russia said Saturday that Ukrainian President Volodymyr Zelensky’s trip to the United States had been a “failure,” after US President Donald Trump berated him in a stunning televised confrontation.
Zelensky planned to sign a minerals’ deal with the United States during the visit, but it ended in disaster when Trump and Vice President JD Vance accused the Ukrainian leader of being “disrespectful” and admonished him in front of US and international media.
Kyiv had hoped the agreement would pave the way for security guarantees from Washington, as it fights the full-scale offensive Russia launched in 2022.
“The visit of the head of the neo-Nazi regime, V. Zelensky, to Washington on February 28 is a complete political and diplomatic failure of the Kyiv regime,” Russian foreign ministry spokeswoman Maria Zakharova said in a statement.
Moscow often accuses Ukraine of harboring “neo-Nazism” and used that as a pretext to start its Ukraine offensive, an accusation that Western leaders and Kyiv call false and absurd.
“With his outrageously boorish behavior during his stay in Washington, Zelensky confirmed that he is the most dangerous threat to the world community as an irresponsible warmonger,” Zakharova said.
Accusing Zelensky of being “obsessed” with continuing the fighting, Zakharova added that Russia’s military goals in Ukraine were “unchanging.”
Moscow has been gaining ground on the battlefield for over a year, pressing their advantage against Ukraine’s overstretched and outgunned army.


Pakistan’s internet industry body seeks reforms amid digital connectivity crisis

Pakistan’s internet industry body seeks reforms amid digital connectivity crisis
Updated 39 min 46 sec ago
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Pakistan’s internet industry body seeks reforms amid digital connectivity crisis

Pakistan’s internet industry body seeks reforms amid digital connectivity crisis
  • Internet service providers’ association says only two operators are controlling Pakistan’s digital connectivity
  • It seeks a second internet gateway in Gwadar, asks regulators to negotiate bandwidth in local currency

KARACHI: Pakistan’s ongoing internet crisis, marked by soaring costs and sluggish speeds, stems from structural issues in which two operators control the gateway to global connectivity, the country’s internet service providers’ association said this week.

Pakistan is heavily reliant on digital connectivity for economic growth. However, the Wireless and Internet Service Providers Association of Pakistan (WISPAP) said in a statement users were getting an average speed of just 20-30 megabits per second (Mbps), which was significantly lower than that of countries like Bangladesh in the region where speeds reach 50 Mbps, despite Pakistanis paying nearly twice as much for the service.

WISPAP warned against the “near-duopoly” of Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA), saying it had led to monopolistic pricing, restricting competition and keeping internet services expensive and inefficient.

Its assertion comes as Africa-1, a new undersea cable system, recently landed in Pakistan, promising additional bandwidth, though the association said it would only benefit the two existing gatekeepers of global connectivity.

“Ban gatekeepers from overcharging or locking out rivals,” the statement prepared on Tuesday quoted Shahzad Arshad, WISPAP chairman, as saying. “Fair rules mean fair rates.”

Pakistan’s internet infrastructure is centered around Karachi, where PTCL and TWA manage the country’s seven undersea fiber-optic cable connections and two smaller overland links.

Arshad noted the lack of competition allows these operators to set high prices for bandwidth, which internet service providers (ISPs) must purchase before distributing internet services to consumers.

WISPAP also proposed policy recommendations, including creating a second internet gateway in Gwadar, saying it would reduce broadband costs by 30 percent in five years.

“Invite new operators, local or foreign, with tax breaks,” its chairman suggested. “PTCL and TWA will have to fight for customers, not just cash them out.”

Additionally, the group urged regulators to follow Malaysia’s model of negotiating bandwidth in local currency, shielding ISPs from volatile exchange rates.

“Cut the dollar leash, and ISPs save 20% overnight,” Arshad said. “That’s cheaper Wi-Fi for every household.”

Pakistan’s internet crisis has far-reaching consequences for businesses, impacting sectors such as e-commerce, fintech and freelancing. The country’s freelance industry, which generated $1.2 billion in 2024, is particularly vulnerable to unreliable connectivity.

WISPAP estimates that affordable, high-speed internet could double freelancing revenue to $2.5 billion by 2030, while also bringing 10 million more Pakistanis online.


Turkiye to repeat offer to host Ukraine-Russia peace talks at London summit, source says

Turkiye to repeat offer to host Ukraine-Russia peace talks at London summit, source says
Updated 43 min 52 sec ago
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Turkiye to repeat offer to host Ukraine-Russia peace talks at London summit, source says

Turkiye to repeat offer to host Ukraine-Russia peace talks at London summit, source says
  • Ankara has welcomed the US initiative to end the war
  • On Sunday, Foreign Minister Hakan Fidan will brief European leaders on Turkiye’s efforts to find a “fair and lasting peace” to the war

ANKARA: Turkiye’s foreign minister will reiterate at Sunday’s meeting of European leaders in London an offer from Ankara to host peace talks between Ukraine and Russia, a Turkish diplomatic source said on Saturday.
NATO-member Turkiye hosted initial talks between the sides months after Russia’s 2022 full-scale invasion of Ukraine, helping secure a deal for the safe passage of grain exports in the Black Sea. It has said any future peace talks must include both countries.
While repeatedly calling for a ceasefire since 2024, Ankara has welcomed the US initiative to end the war, which was derailed by a public argument between the presidents of Ukraine and the United States in Washington on Friday.
On Sunday, Foreign Minister Hakan Fidan will brief European leaders on Turkiye’s efforts to find a “fair and lasting peace” to the war, the source said, adding he will also affirm Ankara’s commitment to Ukraine’s territorial integrity and sovereignty.
Fidan is expected to “underline that Turkiye, which hosted direct negotiations between Russia and Ukraine in March 2022, is ready to take up this role in the coming period,” and emphasize that all parties must jointly focus on lasting regional security and stability, as well as economic prosperity, in negotiations, the person added.
A Black Sea littoral state like Ukraine and Russia, Turkiye has maintained good ties with both since the start of the war. It has provided Kyiv with military support, while refusing to participate in Western sanctions against Moscow.
Ukrainian President Volodymyr Zelensky visited Turkiye last month, on the same day US and Russian representatives met for talks — without Kyiv’s participation — in Riyadh aimed at ending the war.
On Monday, Russian Foreign Minister Sergei Lavrov also held talks in Ankara. On Saturday, Fidan and Lavrov discussed the latest developments around the Ukraine-Russia war in a phone call, the source said, marking the third contact between them in the past two weeks.
On Thursday, delegations from the United States and Russia met in Istanbul for talks aimed at addressing bilateral issues regarding the operations of their respective embassies.
Zelensky said last week that he saw Turkiye as an important security guarantor for Ukraine.