ZeroHedge·2026-01-07 00:15Core Insights - The partnership between the US and Persian Gulf countries, particularly Saudi Arabia and the UAE, is focused on advancing AI infrastructure and technology, with significant investments in data centers and advanced chips [1][3][4] - The US aims to maintain its technological dominance and dollar supremacy through these partnerships, despite concerns over corruption and environmental impacts [2][4][22] Group 1: Strategic Partnerships and Investments - In November 2023, the US and Saudi Arabia signed a Strategic Artificial Intelligence Partnership, with a similar agreement with the UAE in May 2023, involving the export of up to 70,000 advanced Nvidia chips [3][4] - The Gulf states are expected to invest trillions in the US, although the actual benefits to local infrastructure may be limited [4] - Over 3.3 gigawatts of AI-oriented compute power is planned across the Gulf, with the UAE building a five-gigawatt AI campus and Saudi Arabia securing 500 megawatts through partnerships with Nvidia and AMD [5][6] Group 2: Geopolitical and Economic Implications - The Gulf region offers competitive power costs, averaging $0.10 per kWh, and plans to add 42 GW of gas capacity by 2030, outpacing the US [6] - The geographical location of the Gulf allows it to service four billion internet users with low latency, making it ideal for AI applications [7] - The US strategy has shifted from restricting chip exports to integrating Gulf nations into American tech ecosystems to ensure dollar supremacy [9][10] Group 3: Financial and Regulatory Landscape - The Gulf countries possess nearly $5 trillion in sovereign wealth funds, providing a stable source of capital for AI investments [8] - The US is exploring the use of dollar-backed stablecoins for settling AI-enabled exports, aiming to ensure that transactions remain dollar-centric [11][12] - The regulatory environment in the Gulf is seen as favorable for American oligarchs, promoting a model of low tax and minimal regulation [12][20]