Middle East

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Key Facts

Key PlayersG42 (UAE), HUMAIN (Saudi), TII

Top InstitutionsMBZUAI, KAUST

AI Policy StanceStrategic investment, economic diversification

Notable LegislationUAE AI Charter, Saudi AI Framework

Top News

SoftBank Seeks $100 Billion from Gulf Investors to Scale AI Investment Strategy

SoftBank founder Masayoshi Son is pursuing up to $100 billion from Gulf investors to establish an AI-focused investment fund that would acquire companies and transform their operations using artificial intelligence and robotics. The move comes as concerns mount over the firm's $65 billion OpenAI exposure and delayed IPO plans.

Business6 sources

SoftBank Seeks $100 Billion from Gulf Investors to Scale AI Investment Strategy

Business6 sources

AI Boom Propels Global Trade Growth to 3.9% Despite Geopolitical Disruptions, WTO Reports

The World Trade Organization doubled its 2026 global trade growth forecast to 3.9%, driven by a 67% surge in AI-enabling goods trade. Despite Middle East conflict reducing regional oil exports by 24%, supply chains adapted while semiconductors and data center equipment accounted for nearly half of all merchandise trade growth.

Business4 sources

AI Boom Propels Global Trade Growth to 3.9% Despite Geopolitical Disruptions, WTO Reports

Business4 sources

Microsoft commits $10 billion Gulf investment for cloud and AI infrastructure amid regional tensions

Microsoft announced plans to invest over $10 billion across the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait by 2030, focusing on cloud and AI infrastructure. Vice Chair Brad Smith confirmed the aggressive spending schedule continues despite ongoing geopolitical tensions, with digital resilience becoming a central pillar of the company's regional strategy.

Business4 sources

Microsoft commits $10 billion Gulf investment for cloud and AI infrastructure amid regional tensions

Business4 sources

UN General Assembly Confronts AI Threats and Escalating Global Crises as World Leaders Convene

Nearly 130 world leaders converge in New York for the 81st UN General Assembly session, where artificial intelligence risks have jumped to the top of the agenda alongside ongoing wars in the Middle East and Ukraine. UN Secretary-General Antonio Guterres warns of potential "gigantic disaster" without coordinated AI guardrails as the organization faces financial strain and questions about its relevance.

Policy4 sources

UN General Assembly Confronts AI Threats and Escalating Global Crises as World Leaders Convene

Policy4 sources

Iran and Houthi Rebels Exploit Anthropic Claude AI to Target U.S. Warships and Build Hypersonic Missiles

Anthropic's latest threat report reveals Iran-linked actors and Houthi rebels weaponized Claude AI to target U.S. naval forces in the Middle East and develop advanced missile systems. The findings expose how adversaries bypass AI safeguards to enhance military capabilities, conduct domestic surveillance, and run propaganda campaigns.

Technology6 sources

Iran and Houthi Rebels Exploit Anthropic Claude AI to Target U.S. Warships and Build Hypersonic Missiles

Technology6 sources

UAE Revises $30bn AI Data Center Plan After Iranian Attacks Target Critical Infrastructure

The UAE is overhauling its ambitious 5-gigawatt AI data center project after Iranian attacks damaged regional infrastructure in March. Originally planned as a single 10-square-mile campus in Abu Dhabi, the project will now be distributed across multiple sites with underground facilities and enhanced air defenses to protect against drone and missile threats.

Business5 sources

UAE Revises $30bn AI Data Center Plan After Iranian Attacks Target Critical Infrastructure

Business5 sources

G42 Considers US Ownership to Guarantee AI Chip Access Past April 2027 Deadline

Abu Dhabi-based AI firm G42 is in exploratory talks to sell a majority stake to American companies, seeking to secure access to advanced Nvidia AI chips beyond April 2027. The move follows escalating US export controls that now prioritize corporate ownership over geography, marking a shift in how Washington manages technology access to strategic partners.

Business2 sources

G42 Considers US Ownership to Guarantee AI Chip Access Past April 2027 Deadline

Business2 sources

U.S. AI Startup Together AI Moves to Saudi Arabia Amid Data Center Backlash, Secures $5B Deal

Together AI, valued at $8.3 billion, has partnered with Saudi Arabia's Humain to access 250 megawatts of power and 120,000 semiconductors for open-source AI models. The move comes as 48% of Americans strongly oppose new data centers in their communities, pushing U.S. companies to seek AI compute capacity abroad.

Business2 sources

U.S. AI Startup Together AI Moves to Saudi Arabia Amid Data Center Backlash, Secures $5B Deal

Business2 sources

Trump Posts AI Video Showing Iran's Kharg Island Destroyed, No Evidence Attack Occurred

President Donald Trump shared an AI-generated video on Truth Social claiming Iran's Kharg Island oil hub was blown to smithereens, but Reuters confirmed no attack occurred. The synthetically generated clip emerged amid escalating tensions between U.S. and Iran following military strikes on Larak Island and retaliatory attacks on U.S. bases.

Entertainment3 sources

Trump Posts AI Video Showing Iran's Kharg Island Destroyed, No Evidence Attack Occurred

Entertainment3 sources

Euro Zone Economy Beats Forecasts as AI Spending and Consumer Confidence Drive 0.4% Growth

The euro zone economy expanded by 0.4% in the second quarter, surpassing expectations of 0.2% growth. Surging investment in AI, resilient household consumption, and government spending helped the 21-nation bloc overcome challenges from the war in Iran and soaring energy costs, though analysts warn some growth boosters may not last.

Business2 sources

Euro Zone Economy Beats Forecasts as AI Spending and Consumer Confidence Drive 0.4% Growth

Business2 sources

PwC Caught Using AI-Generated Reports With Fake Citations and Fabricated Claims

PwC Middle East published four thought leadership reports on AI and electric vehicles containing AI hallucinations, fake footnotes, and fabricated citations. GPTZero researchers exposed the AI-generated inaccuracies, marking the fourth Big Four firm caught passing off AI slop as authentic research.

Business6 sources

PwC Caught Using AI-Generated Reports With Fake Citations and Fabricated Claims

Business6 sources

US and UAE Launch First Joint AI Military Task Force for Defense Operations

The US Central Command and the United Arab Emirates are launching Task Force Talon Synapse, a first-of-its-kind joint military AI task force based in Abu Dhabi. The team of 20 American and Emirati specialists will develop AI-powered capabilities for intelligence support, critical infrastructure protection, and regional security monitoring, marking a significant milestone in the US-UAE partnership.

Policy2 sources

US and UAE Launch First Joint AI Military Task Force for Defense Operations

Policy2 sources

US eases export restrictions on AI chips to UAE after military partnership in Iran conflict

The US Department of Commerce has relaxed export restrictions on the United Arab Emirates, allowing companies like Apple, Microsoft, and OpenAI to access AI chips and data center equipment without individual licenses. The move follows the UAE's military support during Operation Epic Fury and positions the Gulf nation alongside NATO allies in trade status, though critics raise concerns about security risks and potential conflicts of interest.

Policy5 sources

US eases export restrictions on AI chips to UAE after military partnership in Iran conflict

Policy5 sources

China halts helium exports as Middle East conflict threatens AI chip manufacturing supply chains

China announced an immediate temporary ban on helium exports as renewed US-Iran military conflict threatens global supplies of the gas critical for semiconductor production. The country imports around 85% of its helium needs but has become a key intermediary for Russian helium re-exports to Europe, raising concerns about tightening global availability.

Policy3 sources

China halts helium exports as Middle East conflict threatens AI chip manufacturing supply chains

Policy3 sources

Mukesh Bansal's Nurix AI acquires Verloop to build end-to-end conversational AI platform

Mukesh Bansal-led Nurix AI has acquired conversational AI firm Verloop to strengthen its enterprise offerings across voice and chat channels. The deal adds Verloop's chat automation technology and customer base of over 20 million monthly interactions to Nurix's voice AI platform, creating a comprehensive solution for businesses in India, the Middle East, and beyond.

Startups2 sources

Mukesh Bansal's Nurix AI acquires Verloop to build end-to-end conversational AI platform

Startups2 sources

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