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Why Is U.S. AI Suddenly Flooded With Gulf Money?

A deep dive into the UAE and Saudi Arabia’s aggressive investments in U.S. tech—and what it signals about the future of global AI power.

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Hey everyone,

So The Middle East Has Entered the AI Group Chat.

After reading this heading from the WIRED article made me wondered

What is this for another Sports washing?

or

Another big projects like The Line.

The deeper I learned the answer is much more bigger

I think it’s strategic move for the US and the Middle East countries

Let’s find out in today’s Spotlight.

What’s inside today’s newsletter:

  • 🌐 Tech Pulse

  • 🛠️ Build of the Day: 3 ChatGPT Wrappers That Print Money

  • 🔐 Prompt Vault: Startup Validator

  • 🔧 New Tools on the Block

  • 🔎 Spotlight: Why Is China Suddenly Cracking Down on AI Data Centers?

  •  To-dos

🌐 Tech Pulse

  • Coinbase says hackers bribed staff to steal customer data and are demanding $20 million ransom (I know again….)

  • Google DeepMind's AlphaEvolve Creates Algorithms That Outperform Human Experts

    Google DeepMind has unveiled AlphaEvolve, an AI agent that writes its own code and has already saved millions in computing costs. The system combines Google's Gemini language models with an evolutionary framework that tests and refines algorithms automatically. AlphaEvolve has been deployed across Google's data centers, improving efficiency by 6.7% of Google's global computing resources and has broken a 56-year-old mathematical record by discovering a more efficient matrix multiplication algorithm.

  • You.com's ARI Enterprise Outperforms OpenAI in Research Tests

    You.com has launched ARI Enterprise, an AI research platform that reportedly outperforms OpenAI's technologies in 76% of head-to-head tests. The platform achieved an 80% accuracy rate on the FRAMES benchmark-a research standard created by Harvard, Google, and Meta-and can integrate with enterprise data sources like SharePoint, OneDrive, and Google Drive.

  • Elon Musk's Grok AI Faces Controversy Over Content Issues

    A chatbot developed by Elon Musk's xAI startup appeared to be experiencing a glitch on Wednesday, repeatedly referencing "white genocide" in its responses. The incident highlights ongoing challenges with content moderation in AI systems.

  • Databricks Acquires Database Startup Neon for $1 Billion

    Data analytics company Databricks announced on Wednesday its acquisition of Neon, a startup developing an open-source alternative to AWS Aurora Postgres, for approximately $1 billion. The integration will combine Neon's serverless relational database system with Databricks' data intelligence services to improve AI agent deployment efficiency.

  • AI Note-Taking App Granola Raises $43M at $250M Valuation

    Granola, an AI-powered note-taking application, has secured $43 million in Series B funding led by Nat Friedman and Daniel Gross's venture firm NFDG, achieving a $250 million valuation. The company reports a 10% weekly increase in its user base since launch as users extend their usage beyond meeting notes to personal note-taking.

  • China Tightens Control Over AI Data Centers

    The Chinese government is implementing stricter controls over AI data centers, requiring companies to build new facilities in specific locations that provide authorities greater visibility into their operations. This move represents China's ongoing efforts to maintain oversight of its growing AI sector.
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🛠️Build of the Day

Idea: 3 ChatGPT Wrappers That Print Money
Stack: ChatGPT
Optional: YouTube Video
*sponsored

🔐 Prompt Vault

This week’s AI shortcut to save time or spark action.

🧠 Prompt Name: Startup Validator
Quickly test if your startup idea has potential — before you build.

📋 Prompt:

“I’m working on a new startup idea and need your help validating it. Here’s the idea:

[Insert your startup idea here].

Act as a startup mentor. Give me feedback on:

The core problem it solves

Who the target users are

Any red flags or risks

Suggestions to make it stronger

Whether this idea is worth pursuing (score out of 10)

Be honest, direct, and practical.”

💡 Why it’s useful:
This prompt gives builders fast, no-fluff feedback on early ideas — saving weeks of guesswork and helping you refine or pivot before investing serious time or money.

💼 From our Partners

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🔧 New Tools on the Block

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  5. Quick Mock 2.0: Practice AI interviews from LinkedIn with insider questions

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🔎 Spotlight: Why Is U.S. AI Suddenly Flooded With Gulf Money?

I've been watching something truly transformative happening in the Middle East tech landscape. Saudi Arabia and UAE are pouring unprecedented resources into AI infrastructure, and the scale is honestly staggering.

Although Saudi Arabia had been known for doing something every year I guess by now

Why?

Three years ago they started sports washing by bringing best football players like Cristiano Ronaldo and Neymar in their Saudi League

Then came mega self reliant cities project like The Line.

And this year it’s AI.

But the most impressive thing about them is they’re diversifying

Recent high-level visits to the Middle East resulted in major deals centered around artificial intelligence infrastructure between US tech companies and nations like Saudi Arabia and the UAE.

What caught my attention first was the sheer ambition: 

  • they're building what will become the largest AI datacenter cluster outside America in the UAE, while Saudi Arabia is scooping up hundreds of thousands of Nvidia's most advanced GPUs.

  • They're partnering with the biggest names in tech - Nvidia, AMD, Qualcomm, and AWS - with plans to build gigawatts of AI computing capacity.

For me, this represents a pivotal shift in the global AI landscape. These Gulf nations are strategically positioning themselves as major players in the AI race, deliberately diversifying their economies beyond oil and into high-tech sectors.

I know some where US strategic moves because while these collaborations aim to boost American tech influence, they also highlight the growing geopolitical rivalry, particularly with China

Source: WIRED

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