Posted inEmergent Tech

Middle East’s influence in the growing AI investment landscape  

The Middle East, notably the UAE, emerges as a focal point for AI investment and innovation, with figures like Sam Altman and Softbank eyeing trillions for chip manufacturing.

The growing technological advancements across the globe has put the Middle East, particularly the United Arab Emirates (UAE), as the nexus of innovation and Artificial Intelligence (AI)investment.  Over recent weeks, the region’s landscape has witnessed a surge in activity, particularly in the domains of AI and chip manufacturing, thrusting it into the spotlight of the global tech arena. 

At the forefront of this transformative wave stands Sam Altman, the visionary CEO of OpenAI, whose audacious plans to secure trillions of dollars for AI-chip manufacturing have electrified the tech community.  

Altman’s ambitious vision, coupled with the Japanese conglomerate Softbank Corp’s pursuit of a monumental $100 billion (about $310 per person in the US) for chip production, underscores the Middle East’s role as a pivotal player in shaping the future of technology. 

The chip battles 

“The Middle East, and specifically the UAE has been open to trying and testing new technologies. Currently, most AI technologies are currently in their nascent stages, globally. There is a need for an environment that gives freedom and creates strong regulatory guidelines towards AI and its applications,” says Hassan Awada, Associate Managing Director, Kroll, Abu Dhabi.  

But before we delve deeper into the battle taking place, let us see what these AI chips are. These chips, including graphic processing units (GPUs), application-specific integrated circuits (ASICs), and field-programmable gate arrays (FPGAs), form the backbone of modern AI infrastructures (ASICs), and field-programmable gate arrays (FPGAs), form the backbone of modern AI infrastructure. 

While general-purpose chips like central processing units (CPUs) suffice for simpler AI tasks, they become increasingly inadequate as AI technologies advance. The success of modern AI hinges on large-scale computations, with the training of leading AI algorithms consuming significant time and resources—sometimes costing upwards of $100 million. 

These specialized AI chips serve as the shovels in the contemporary gold rush of AI development. They are tailored to efficiently execute the specific calculations required by AI systems, delivering the computational power necessary to implement AI applications at scale. 

In essence, AI chips are indispensable tools for cost-effectively deploying AI technologies. Attempting to achieve comparable performance using older chips or general-purpose processors would incur significantly higher costs and hinder innovation in the field. 

The greater the number of players, the more the option of democratisation. As experts add, the current supply does not match the needed demand for AI chips. It therefore is no surprise that there are more companies looking to cater to the existing demand.  

Bringing in stronger policies  

As Awada earlier mentioned, the Middle East and specifically, the UAE has been pioneering in building and creating an environment for a global AI play. Altman had also emphasised the urgent need for a unified global AI policy, positioning the UAE as a potential vanguard in shaping the discourse around AI governance.  

Against the backdrop of escalating geopolitical tensions and concerns about AI proliferation, Altman’s call for collective action reverberated across the global tech landscape. 

In a bid to democratise AI, Altman unveiled OpenAI’s plans to open-source select language models and develop cost-effective solutions tailored for resource-constrained nations—a testament to the organization’s commitment to equitable access to transformative technologies. 

Jensen Huang, CEO of NVIDIA, echoed Altman’s sentiments, underlining the importance of each nation charting its AI trajectory while navigating the delicate balance between economic growth and cultural preservation.  

As fears of AI’s unchecked expansion cast a shadow, Huang advocated for robust regulatory frameworks to safeguard against potential risks—a sentiment resonating within the global tech community. 

Against the backdrop of the UAE’s commitment to advancing AI technologies, Altman’s proposition resonated deeply with the summit’s overarching theme of fostering international cooperation and embracing innovative technologies. 

The UAE’s trajectory towards becoming a global hub for AI innovation traces back to 2017 with the launch of its ambitious AI strategy.  

At WGS 2024, Omar bin Sultan Al Olama, the UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, unveiled the “Building Responsible Artificial Intelligence Forum (BRAIN),” underscoring the nation’s unwavering dedication to shaping the future of AI governance. 

Working around the geographical challenges 

However, amidst the optimism surrounding the region’s technological renaissance, geopolitical complexities loom large.  

The burgeoning ties between the UAE and China have raised eyebrows in Washington, prompting concerns about the implications for US interests in the region.  

G42, an Emirati AI company with close ties to the UAE’s National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, recently announced plans to scale back its presence in China—a move aimed at assuaging American apprehensions. 

As the curtains descended on another edition of the World Government Summit, the Middle East, with the UAE at its helm, emerged as a crucible of innovation and a linchpin in shaping the future of AI governance.  

With the world’s gaze rigidly fixed on the region, the UAE stands poised to lead the charge towards a more responsible and inclusive AI-driven future.