Offshoring AI to the Middle East Could Hand China a Win
The Gulf has the resources Trump needs to expand America’s AI prowess, but there’s no guarantee the Middle East will stay loyal to his cause.
How long will the loyalty last?
Photographer: Win McNamee/Getty Images EuropeHow can the US remain at the head of the global AI pack? For former President Joe Biden, part of the answer was the “AI diffusion rule,” enacted in the final days of his presidency. The rule capped sales of the most advanced artificial intelligence chips to most countries, while leaving room to negotiate exceptions.
Not so fast, said President Donald Trump. This week, just before the diffusion rule took effect, his administration tore it up. And during his Middle East tour, Trump cut several large deals for companies like Nvidia and AMD to sell chips to the United Arab Emirates and Saudi Arabia, which have big ambitions to become AI hotspots but were capped by the diffusion rule. In short — and as you would expect from Trump — rules are out, dealmaking is in.