Saudi Arabia and the United Arab Emirates face growing pressure on their artificial intelligence investments as US elections and potential chip restrictions alter regional technology alliances.
The political shifts in Washington threaten to tighten export controls on advanced semiconductors essential for building large-scale computing hubs in the Gulf.
Democratic Midterm Gains
International technological alliances, export controls, and access to advanced computing systems occupy the upcoming legislative agenda.
State-level opposition adds further friction. Democratic candidates who support limiting large data centers won governorships. Part of this resistance stems from the impact data centers have on local resources.
US Chip Restrictions Affect Gulf AI Projects
The supply of semiconductors remains one of the most sensitive issues for artificial intelligence projects in the Gulf. Building data centers requires advanced processors, servers, and computing power that depends on international manufacturers and suppliers.
US restrictions on advanced chips represent a factor that could limit the technological autonomy of regional operators. A condition that Nvidia has reportedly set for its data center clients worldwide requires at least 51 percent of its services to be allocated to non-Chinese companies, according to information published by the Financial Times.
Oracle also canceled a $7 billion chip leasing agreement with the Chinese company Tencent after receiving pressure from Washington, as reported by the same outlet.
Alliances Under Washington Rules
Despite the restrictions, the main artificial intelligence projects in the Gulf maintain agreements with major US companies. In Saudi Arabia, Humain has the backing of the Public Investment Fund and Saudi Aramco, establishing alliances with Amazon Web Services, Nvidia, and Microsoft to develop its technological capabilities.
Through its subsidiary Core42, G42 develops cloud infrastructure services and computing solutions for artificial intelligence.
However, their current US authorizations expire in April 2027, unless renewed or replaced, inspenet.com reported. This expiration date adds pressure for both companies to maintain operations within the conditions set by Washington.
Infrastructure Limits Restrict Gulf AI Model Choices
The Humain case presents another element that deserves attention. The company has used technology from MiniMax, a Chinese developer of artificial intelligence models.
Gulf Resources Attract Data Center Investment
The difficulties in expanding large IT facilities within the United States could benefit the Middle East.
However, having available land and energy does not equate to technological independence.
