U.S. and Gulf Launch $2 Trillion AI Alliance to Shift Global Compute Power

The United States and Gulf Cooperation Council (GCC) nations are forming a strategic $2 trillion alliance to shape the global AI infrastructure landscape, signaling a major realignment in digital power dynamics. At the heart of this initiative is the Stargate UAE campus, a $500 billion project in the United Arab Emirates that is expected to generate 5 gigawatts of computing power, with the first 1 gigawatt cluster set to become operational in 2026. Saudi Arabia is contributing an additional $600 billion to U.S.-based tech firms, while other Gulf nations including Qatar and Bahrain are also participating, pushing the total investment beyond $2 trillion. The collaboration aims to shift the center of AI infrastructure from Asia to the Middle East, leveraging the region’s vast energy reserves to power massive data centers [1].

This alliance is backed by major commitments from U.S. technology firms. NVIDIA is projected to supply between 500,000 and 1 million of its most advanced chips annually to the Gulf, while AMD has pledged $10 billion in hardware to Humain, a Saudi company working alongside the UAE’s G42. These chip partnerships are complemented by support from firms like Microsoft, Oracle, Cisco, and OpenAI, which are benefiting from the Gulf’s ability to finance large-scale infrastructure projects that would be more challenging in the U.S. or Europe due to cost and regulatory constraints [1].

The U.S. has recently relaxed export controls on AI technologies for strategic allies, and the Gulf has emerged as the primary beneficiary. The AI Action Plan, established through executive orders, provides a governance framework allowing U.S. firms to share full-stack AI capabilities—including chips, models, and APIs—without triggering national security restrictions. In return, Gulf states are required to follow intergovernmental assurance protocols. This shift not only eases domestic pressure on U.S. energy and AI infrastructure but also secures long-term partnerships for leading American chipmakers and software platforms [1].

The Gulf is aiming to transform the concept of “AI as the new oil” into a tangible reality by reallocating its sovereign wealth funds to build a global “compute engine.” This strategic pivot is intended to reduce dependence on fossil fuel exports and position the GCC as a central node in the global AI supply chain. By aligning with the U.S., the Gulf is also distancing itself from China’s AI ecosystem, a move that aligns with broader geopolitical realignments [1].

The collaboration between the U.S. and the Gulf, anchored by the Stargate UAE initiative and supported by multi-gigawatt data centers and a steady pipeline of chips, marks the emergence of a new AI geography. The infrastructure is no longer centered in Silicon Valley or Shenzhen, but in cities like Abu Dhabi and Riyadh. With the first clusters expected to launch by 2026 and export plans set to conclude by late 2025, the transformation is underway at a rapid pace [1].

Source: [1] US and Gulf Join Forces in $2 Trillion AI Power Play (https://coinfomania.com/us-and-gulf-join-forces-in-2-trillion-ai-power-play/)