Saudi-UAE loophole in AI Computing?

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Will Saudi Arabia and UAE be creating a loop-hole for China and Russia to get access to high-performance cloud computing for AI?

They are both buying up enormous numbers of chips to build their own gargantuan data centers.

“Saudi Arabia and the United Arab Emirates are buying up thousands of the high-performance Nvidia chips crucial for building artificial intelligence software, joining a global AI arms race that is squeezing the supply of Silicon Valley’s hottest commodity.

The Gulf powerhouses have publicly stated their goal of becoming leaders in AI as they pursue ambitious plans to turbocharge their economies. But the push has also raised concerns about potential misuse of the technology by the oil-rich states’ autocratic leaders.” (Financial Times, August 14, 2023)

If China and/or Russia get access to use these data centers, then they can run large AI models there.

I expect the US to intervene – otherwise the US chip restrictions on China will become a joke.

The question is only how the US will intervene against Saudi Arabia and UAE in this delicate matter.

Both Saudi Arabia and UAE are no longer push-overs for the USA – and we speak about an enormous amount of profit they can earn by super-charging China and Russia with exaggerated prices for access. On top of earning a lot of money, Saudi Arabia and UAE will also earn a lot of political “bonus points” in goodwill from China for doing so.

The US will have to use real strong coercion to stop Saudi Arabia and UAE from exploiting this great opportunity.

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Karsten Riise is a Master of Science (Econ) from Copenhagen Business School and has a university degree in Spanish Culture and Languages from Copenhagen University. He is the former Senior Vice President Chief Financial Officer (CFO) of Mercedes-Benz in Denmark and Sweden.

He is a regular contributor to Global Research.  


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Articles by: Karsten Riise

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