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UAE and Saudi Arabia lead global shift towards sovereign AI

Naushad K. Cherrayil
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UAE and Saudi Arabia lead global shift towards sovereign AI
  • Data show 17% of all surveyed enterprises in the region are considered ‘Deeply Committed’ to sovereign AI—substantially higher than the global average of 13%.

Lately, it feels like the world is waking up to a new reality: controlling your own data and AI destiny matters more than ever.

According to fresh findings from EnterpriseDB (EDB), companies in the United Arab Emirates and Saudi Arabia are trailblazing this global movement toward AI and data sovereignty, leaving many other regions scrambling to catch up.

Enterprises in countries that show the highest propensity for data and AI sovereignty now show a difference of 12 per ent from the lowest country (France) to 29 per cent for the highest in UAE and Germany.

Scandinavia ranks third, the US. fourth, Japan fifth, Singapore sixth, Spain seventh, Italy eighth, India ninth, the U.K. tenth, and India eleventh.

While these positions vary, the constant leaders through the growth of AI and data sovereignty are UAE, Scandinavia, and Germany. This measure does not reflect absolute opportunity but relative position.

Sovereign AI adoption is about more than tech jargon—it’s the ability for organisations to manage, localise, and secure their AI systems and data, all on their own terms.

That means deciding where data lives, how AI models are trained, and which platforms are trusted—without relying on foreign vendors or infrastructures.

The result? Stronger compliance with national laws, fortified data security, and a big confidence boost for innovation.

The Middle East’s edge

EDB’s recent report, titled “Sovereignty Matters: A Global Blueprint for Sovereign, Agentic and Generative AI,” puts a big spotlight on the Middle East’s momentum.

The data shows that 17 per cent of all surveyed enterprises in the region are considered ‘Deeply Committed’ to sovereign AI—substantially higher than the global average of 13 per cent.

These aren’t just buzzword-dropping organizations; they’re planting their flags and treating sovereignty as a must-have, not a nice-to-have. According to the research, the pay-off is real: these leaders are seeing up to five times greater returns on their AI investments compared to less committed peers.

Neglecting sovereignty, however, is a risky game. Without full control, organizations run into siloed data, regulatory headaches, and can even jeopardise entire digital ecosystems over one misstep.

In a world speeding toward agentic and generative AI, projected to pump over $1 trillion into global GDP by 2028, that’s playing with real stakes.

National priorities and ambitious government blueprints are crucial. The UAE’s National Strategy for Artificial Intelligence 2031 and Saudi Arabia’s Vision 2030 have put AI front and centre as levers for economic transformation, job creation, and global competitiveness.

These aren’t just political slogans—they’re frameworks that encourage local enterprises to view data ownership as essential for innovation and resilience.

Kevin Dallas, EDB’s CEO, didn’t mince words: “Sovereignty over AI and data is the single biggest predictor of success with generative and agentic AI. The UAE and Saudi Arabia are showing the world what’s possible when organisations treat sovereignty as mission-critical. They’re scaling, securing, and reaping game-changing returns.”

Kash Rafique, who leads EDB in the Middle East and Africa, echoed the sentiment: “Sovereignty is a foundation for growth here. Forward-thinking government programs have nurtured an environment where controlling AI and data is the baseline for banking, energy, health, and logistics.”

Stats that speak volumes

EDB’s research is tough to ignore. After surveying over 2,000 enterprise executives globally—and a closer look at 175 in the UAE and KSA—the results are stunning:

  • 95 per cent of companies globally aim to launch their own sovereign AI and data platforms in the next three years
  • Only 13 per cent (the ‘Deeply Committed’) have actually pulled it off today
  • These leaders boast:
    • 5x higher ROI on AI investments
    • Twice as many mainstream AI deployments
    • 2.5x more confidence that they’ll lead their industries

Meanwhile, the majority risk lagging behind—hampered by scattered data, incompatible tech, and underused intelligence tools.

For enterprises wanting a trustworthy, high-performing AI foundation, sovereignty is quickly becoming the key differentiator.

The Middle East, especially the UAE and Saudi Arabia, is setting a template for the rest of the world: take control now, and the future of AI-driven innovation, efficiency, and leadership is yours for the taking.

Nvidia seals strategic partnership on next-gen AI chips with Intel

Naushad K. Cherrayil
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Nvidia seals strategic partnership on next-gen AI chips with Intel
  • Strategic marriage could give Intel an advantage over competitors like AMD, whose chips historically haven’t been as deeply integrated with Nvidia’s.
  • Deal also has strong geopolitical undertones, considering previous US administration efforts to safeguard the country’s tech infrastructure and reduce reliance on Asian manufacturing.

Nvidia’s $5 billion investment in Intel has sent ripples through the global semiconductor industry, marking a dramatic twist in the AI hardware race.

By acquiring roughly four per cent stake in Intel, Nvidia cements a powerful partnership designed to create multiple generations of chips that unite Intel’s processors with Nvidia’s industry-leading AI and graphics technology.

Inside the Nvidia-Intel alliance

What’s particularly exciting about this alliance is how it leverages both companies’ strengths. The duo plans to co-develop chips using Nvidia’s NVLink technology, a proprietary connection that enables ultra-fast communication between processors—a crucial feature for data centres and AI workloads.

Intel will supply central processors and handle advanced packaging for these joint products, while engineers from both firms collaborate to bring Nvidia’s designs to life inside Intel’s fabrication process.

The strategic marriage could give Intel an advantage over competitors like AMD, whose chips historically haven’t been as deeply integrated with Nvidia’s.

Industry analysts believe that even though Nvidia hasn’t committed to manufacturing its own chips with Intel’s next-generation 14A process, the sheer scale and potential popularity of these joint chips could secure the production volume Intel needs for its high-stakes manufacturing bets in 2027 and beyond.

In short, if these products take off, Intel’s future as a leading chipmaker could be back on track.

Strategic stakes and industry fallout

Nvidia’s move to become one of Intel’s largest shareholders is the latest in a series of dramatic shifts for the legacy chipmaker. The $5 billion influx follows earlier investments from SoftBank and a historic $5.7 billion stake purchased by the US government—a deal orchestrated after President Trump raised concerns about Intel’s global ties and national security implications.

For Nvidia, the partnership brings it closer to Intel’s vast customer base, including businesses and governments with decades of reliance on Intel software and hardware.

The deal also has strong geopolitical undertones, considering previous US administration efforts to safeguard the country’s tech infrastructure and reduce reliance on Asian manufacturing.

Meanwhile, AMD and Broadcom face new risks. AMD’s strides in PCs and data centres may lose ground if the new Intel-Nvidia chips, with their high-speed integration, become the standard. Broadcom—whose technology helps key customers like Google build AI chips—also faces a tougher competitive landscape.

New Intel CEO Lip-Bu Tan faces high expectations. He has promised to slim down Intel’s operations and build factory capacity based strictly on market demand. Nvidia’s major investment is a jolt of confidence: Wall Street responded with a 23% jump in Intel shares after the announcement.

As part of this evolving partnership, Intel and Nvidia will develop new PC and data centre chips over multiple product generations. While Nvidia stops short of moving all its manufacturing to Intel’s foundries—still relying on TSMC for some of its flagship processors—the groundwork is laid for deeper collaboration, or even a future acquisition, as some analysts suggest.

Ultimately, the Nvidia-Intel pact isn’t just another corporate alliance. It’s a reset button for Intel at the dawn of the AI age, forcing rivals to adapt as two storied tech titans bet big on the future of chipmaking, data centers, and artificial intelligence.

Global AI spending to cross $2tr next year

Ana Mary Joseph
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Global AI spending to cross $2tr next year
  • By 2026, AI is forecast to become deeply woven into consumer products like smartphones, personal computers, and a range of smart devices.

Artificial intelligence is poised to drive a massive surge in global technology investment. According to the latest forecast by Gartner, Inc., total worldwide spending on AI will climb to nearly $1.5 trillion in 2025 and is expected to cross an astounding $2 trillion just a year later.

John-David Lovelock, Distinguished VP Analyst at Gartner, attributes this explosive growth not just to the American tech titans, but to an expanding roster of global players.

“Major hyperscalers continue pouring resources into building out data centres equipped with state-of-the-art, AI-optimised hardware and powerful GPUs to scale their services,” he notes.

Meanwhile, momentum from Chinese firms and rapidly emerging AI cloud providers is reshaping the investment landscape, bringing more diversity and competition to the field. Venture capitalists are also fueling this rise, pouring record amounts into promising AI startups and specialised providers around the world.

The forecast reflects more than just back-end infrastructure spending. By 2026, AI is forecast to become deeply woven into consumer products like smartphones, personal computers, and a range of smart devices.

The democratisation of AI means it will increasingly shape how individuals interact with technology, work, and communicate.

What’s powering the surge?

  • Data centre expansion: Hugely expensive projects to meet the growing demand for AI-driven services
  • Consumer technology: Integration of advanced AI features into popular electronics, driving replacement and upgrade cycles
  • Cloud services and AI providers: Proliferation of new AI-powered solutions and platforms
  • Venture capital: Sustained investment fostering innovation and competitive new entrants

Looking ahead

With the world’s largest tech companies and an expanding field of challengers racing to embed AI across our digital ecosystem, the next several years will be defined by unprecedented growth and transformation.

As investments soar and applications multiply, the influence of AI on business, daily life, and the global economy is set to dramatically accelerate.

AR/VR and smart glasses market set for explosive growth

Mohammed Fahad
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AR/VR and smart glasses market set for explosive growth
  • Meta captures 60.6% share of the global AR/VR and smart glasses market in second quarter of this year.
  • IDC believes new demographics will push the sector far beyond its gamer roots, with consumers embracing use cases from entertainment to productivity to richly personalised notifications.

If there’s a tech wave set to make a splash in 2025, it’s surely the world of AR/VR headsets and smart glasses.

Projections from the International Data Corporation (IDC) forecast that global shipments for these combined devices—including display-free smart glasses—are poised for a robust 39.2 per cent leap next year. That’s 14.3 million new units set to land in consumers’ hands, faces, and occasionally, pockets.

Meta’s big lead

In the hardware race, Meta is completely running the show. During the second quarter of 2025, the company captured an eye-popping 60.6 per cent share of the global AR/VR and smart glasses market.

This isn’t just about clunky VR goggles: Meta’s success in lighter, display-less Ray-Ban smart glasses shows that there’s appetite for more subtle, wearable access to AI. Their continued investments in Mixed Reality are seen as laying the groundwork for what could become the first wave of truly mainstream Augmented Reality eyewear.

Trailing behind is Xiaomi, eking out a 7.7 per cent share thanks to its AI Glasses and Mija Smart Glasses, although its reach is mostly confined to China. Other players—XREAL (4.1 per cent), RayNeo (2.7 per cent), and Huawei (2.6 per cent)—fill out the global top five. As more brands dive in, expect the competition and innovation to heat up.

Smart glasses lead the charge

The real rocket fuel for this category in 2025 appears to be smart glasses, spearheaded by Meta’s Ray-Bans. Predictions call for a mind-blowing 247.5 per cent year-on-year surge in this segment alone, as new launches from tech heavyweights and up-and-comers put AI front and centre in our daily lives.

IDC points to an emerging shift: where once an AI assistant living in your glasses was the stuff of science fiction, it’s rapidly becoming everyday tech. The arrival of display-equipped AI glasses from Meta, Google, and others promises to expand use cases further—and distribution channels like eyewear retailers and electronics stores are gearing up to meet the expected demand.

Who’s wearing, and why?

Historically, gaming dominated AR/VR headset use, and titles like Animal Company, Beat Saber, and Gorilla Tag continue to rake in revenue. But the landscape is evolving. While games remain hot sellers, YouTube now leads in hours watched, and AI-driven productivity and lifestyle apps are steadily gaining traction.

As these devices grow more accessible and varied, IDC believes new demographics will push the sector far beyond its gamer roots, with consumers embracing use cases from entertainment to productivity to richly personalised notifications.

It’s not just hardware where the action is. IDC sees software, apps, and service spending for AR/VR jumping by nearly 20 per cent to reach almost $12 billion in 2025. As creators and developers experiment with new experiences—from immersive creativity tools to AI-powered personal assistants—the business case for the category keeps strengthening.

Looking ahead, IDC envisions nothing but growth. By 2029, annual shipments could hit 43.1 million units, riding a compound annual growth rate of 31.8 per cent.

Display-less smart glasses will likely remain the point of entry for many, thanks to their blend of affordability and convenience, though Mixed Reality headsets and smart specs with screens are hot on their heels.

In short: whether for play, productivity, or just staying in the loop, expect to see a lot more wearable tech on faces everywhere over the next five years.

China clamps down on Nvidia chip sales to fuel homegrown AI industry

Ana Mary Joseph
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China clamps down on Nvidia chip sales to fuel homegrown AI industry
  • Chinese regulators acknowledge that their own AI chips now match or even outperform Nvidia’s export-restricted offerings.


China’s main internet regulator has just delivered a major shock to the world of artificial intelligence: the country’s biggest tech players, including ByteDance and Alibaba, have been ordered to stop buying and testing Nvidia’s AI chips.

Specifically targeted is the RTX Pro 6000D, a chip specially designed for China, which had been generating considerable buzz among local companies eager for advanced AI power.

A swift and decisive policy shift

The Cyberspace Administration of China (CAC) has reportedly told tech giants this week to put an immediate halt to verification and purchase of the RTX Pro 6000D. The move comes just as several companies were ramping up their orders, some looking to buy tens of thousands of units. But, as soon as the directive landed, suppliers were told to cease all related efforts.

Reaching further than earlier guidance—previously focused on Nvidia’s H20 chip—this outright ban marks an escalation. The context? Chinese regulators have concluded that their own AI chips now match or even outperform Nvidia’s export-restricted offerings. It’s a bold statement: China is telling its homegrown tech industry it’s time to break free of reliance on foreign AI hardware.

Wednesday’s news didn’t go unnoticed by the markets. Nvidia’s shares fell about three per cent after word spread about China’s clampdown. Jensen Huang, Nvidia’s CEO, was in London at the time and publicly acknowledged the setback, expressing disappointment but also a willingness to respect each government’s decision.

“We can only be in service of a market if the country wants us to be,” he reflected, recognising the broader US-China tensions at play.

Beijing’s big bet on domestic tech

It’s clear Beijing is making an all-in bet on developing its own semiconductor industry—especially in the realm of AI, where the stakes are enormous in the ongoing US-China tech rivalry.

The regulator’s decision is seen as a loud signal to Chinese tech companies: domestic innovation is now the top priority, with no more waiting for a possible relaxation of US restrictions on Nvidia.

Insiders say that where there once was hope for renewed Nvidia supply—should geopolitics improve—the mood has shifted to urgent, coordinated action to build and scale up China’s own AI ecosystem with native chips.

Chinese alternatives

The ban didn’t come out of thin air. After the US administration barred Nvidia from selling its most powerful products to China, the company scrambled to develop chips—like the now-banned Pro 6000D and H20—tailored for the Chinese market.

But even as Nvidia hustled, Chinese regulators and chipmakers, including Huawei and Cambricon, have been racing to catch up. In fact, Beijing recently convened domestic manufacturers to directly compare their chips’ performance against Nvidia’s export-compliant models.

The results, according to sources familiar with these meetings, suggest that Chinese AI processors have achieved, and in some cases exceeded, the capabilities of Nvidia’s restricted chips. This achievement underpins the government’s new hard line against further Nvidia sales in China. Industry voices point out that, with domestic output set to triple next year, China now believes it can satisfy demand internally.

The RTX Pro 6000D was launched with fanfare just this July during a visit from Nvidia’s CEO. It represented the last major Nvidia product allowed into the country after tightening US restrictions.

As of now, with the new ban enforced and domestic supply ambitions running high, Chinese tech companies are being pushed into a new era—one in which they build, test, and deploy homegrown AI chips at scale, and the world watches closely to see if China’s bet will pay off.

Moody’s flags risks in Oracle’s massive AI contracts

Naushad K. Cherrayil
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Moody’s flags risks in Oracle’s massive AI contracts
  • Moody’s projects Oracle’s leverage ratio could hit 4x before earnings catch up, creating an extended period of high financial pressure.
  • Agency believes free cash flow is likely to stay negative for quite a while, with breakeven only on the distant horizon as Oracle invests heavily to meet its obligations under these monster contracts.

It’s not every day that a single deal can reshape the financial outlook of a tech titan, but that’s exactly what’s happening at Oracle.

The company has recently set the business world abuzz with $300 billion in new artificial intelligence contract signings—most notably an enormous cloud agreement reportedly inked with OpenAI.

These contracts hint at transformative potential for Oracle’s Oracle Cloud Infrastructure, with the firm projecting booked revenue for the unit could exceed a staggering half a trillion dollars.

But while the headlines showcase ambition and scale, Moody’s Ratings is raising a cautious eyebrow. In a fresh note this week, the influential US credit rating agency acknowledged the “.tremendous potential” of Oracle’s new AI infrastructure contracts.

However, Moody’s also flagged multiple financial risks that could temper Wall Street’s excitement.

Counterparty risk—A single point of failure?

The first red flag concerns counterparty risk. By securing such an oversized commitment from just a handful of AI powerhouses, Oracle has placed a big bet on the fortunes and follow-through of a very limited group of customers.

Moody’s was especially wary of what could happen should one of these giants pull back or default. The agency likened Oracle’s ongoing global data centre construction spree to one of the world’s largest project financings—meaning there’s an awful lot riding on a few key partnerships.

As if that weren’t enough, Moody’s analysts warned about Oracle’s financial profile as the company leans into this expansion. The massive infrastructure build-out will mean debt piling up faster than the company’s earnings (EBITDA).

Moody’s projects Oracle’s leverage ratio could hit 4x before earnings catch up, creating an extended period of high financial pressure.

And there’s another caution: don’t expect a cash bonanza anytime soon. The agency believes free cash flow is likely to stay negative for quite a while, with breakeven only on the distant horizon as Oracle invests heavily to meet its obligations under these monster contracts.

What’s Oracle’s grade?

Moody’s didn’t take immediate action on Oracle’s current credit rating, holding it at Baa2—still investment grade, but just above junk status. This leaves Oracle in a somewhat precarious position: poised for AI-driven growth at a massive scale, but carrying financial risks that could quickly snowball if conditions shift.

In the end, Oracle’s AI cloud play is a high-stakes wager. Success could cement it as a foundational part of the global AI infrastructure. Missteps, on the other hand, could rattle not just Oracle’s balance sheet but the entire industry’s confidence in bold, concentrated bets on artificial intelligence.

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