Google to Open Two New HQs in Saudi Arabia

Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
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Google to Open Two New HQs in Saudi Arabia

Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)

American multinational technology company Google is preparing for launching two new headquarter offices in the Kingdom of Saudi Arabia. The planned offices will open in the cities of Riyadh and al-Dammam. Google also is building a data partnership with Saudi oil giant, Aramco.

Google drove about SR12.2 billion ($3.25 billion) in economic activity in Saudi Arabia in 2021, with the Android Developer ecosystem supporting at least 29,000 jobs in the kingdom every year.

The search engine giant announced the figures in its latest impact report released on Tuesday. The report was based on public polling, economic modeling, and third-party data.

Besides, YouTube channels are making six figures or more in revenue are up by 20% year over year and the total number of developers making over SR37,500 ($10,000) per month or more on Play grew by 15%, said the Google Impact Report.

According to the report, 66% of people used Google Maps to find a local business and 52% of businesses reported an increase of customers coming from online search or search advertising in the last two years.

The paper also found that 67% of online businesses said that Google Workspace was essential in enabling remote working (Google workspace is a collection of cloud computing and collaboration tools like Google Drive, Gmail and Meet).

“It's great to see the positive impact Google products like Search, YouTube, Maps and Android have on the daily lives of Saudi people, local business owners, developers and content creators,” said Anthony Nakache, Managing Director for Google in the Middle East & North Africa.

“Saudi Arabia is young, smart and digital, and we're proud to be an engine of growth in the country and an enabler in its digital transformation journey,” he added.

“We're excited to see what great things people can do there given the right tools and skills and we are committed to doing more through programs and local partnerships,” he remarked.

“In the last couple of years, Covid-19 has helped accelerate some preexisting trends such as the rise of e-commerce, the shift towards remote working and the use of online tools to support lifelong learning,” said Jonathan Dupont, Partner at Public First.

“In our research, people and businesses across the Middle East told us how important Google’s tools and services had been in enabling them to adapt to these changes: helping small businesses start to sell online, supporting workers to collaborate better online and children to keep learning,” he added.

In October 2020, Google announced a $13 million fund to help one million people and businesses in the Middle East and North Africa learn advanced digital skills and grow their businesses by the end of 2021.



OpenAI's Ad Business Hits $1 billion Annualized Revenue Run Rate

FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
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OpenAI's Ad Business Hits $1 billion Annualized Revenue Run Rate

FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 

OpenAI on Monday said ChatGPT Ads, the company's advertising business, has reached $1 billion in annualized revenue run rate, as adoption picks up and global expansion rolls out.

The company started testing ads in ChatGPT US earlier this year and has steadily expanded to add advertisers and tap into more markets, as it banks on advertising to boost overall revenue growth ahead of a potential IPO.

Starting on Monday, advertisers across India, Europe, the Middle East and North Africa can purchase ChatGPT ads directly via OpenAI's Ads Manager — a tool it has already rolled out in the United States. Ads Manager has been helpful in drawing small- and medium-sized businesses (SMBs) to advertise on ChatGPT, the company said, adding that SMBs now represent a "material share" of its ads business, according to Reuters.

OpenAI said advertisers outside the US represent a growing share of revenue, without disclosing further details.

OpenAI has been displaying ads to users on ChatGPT's free tier and the lower-priced Go plan. In April, OpenAI had said its ads pilot in the US crossed $100 million in annualized revenue within six weeks of its launch.

For OpenAI, competing in the advertising industry means challenging the dominance of Alphabet's Google and Facebook parent Meta, both of which rake in hundreds of billions in ad revenue annually.

OpenAI confidentially filed for a US initial public offering earlier this year, with the company reportedly expected to go public in 2027 or sooner.

 

 


Nvidia Invests $3.5 billion in MediaTek Convertible Bonds

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)
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Nvidia Invests $3.5 billion in MediaTek Convertible Bonds

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)

Nvidia said on Monday it has invested $3.5 billion in convertible bonds issued by Taiwan's MediaTek, which could add to growing investor concerns about circular financing in the AI sector.

The new deal is the latest example of Nvidia helping finance businesses building products and infrastructure around its technology, a strategy that supports growth in its AI ecosystem but has drawn investor scrutiny, Reuters reported.

The deal includes MediaTek adopting Nvidia's NVLink Fusion platform, allowing customers to develop custom AI chips that can connect to Nvidia-powered AI systems and data centers.

The companies will also extend collaboration on AI chips for personal computers and continue developing platforms for AI-powered vehicles.

In June, Nvidia unviled the RTX Spark PC chip to "reinvent the PC" for the AI era, which was developed in partnership with MediaTek.


ChatGPT Becomes First AI Chatbot to Face Tougher EU Rules

In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
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ChatGPT Becomes First AI Chatbot to Face Tougher EU Rules

In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)

ChatGPT will have to comply with tougher safety rules after the EU added it Monday to a list of digital services subject to greater legal scrutiny, a first for an AI chatbot.

Brussels also designated Reddit and Roblox as "very large" online platforms, a label that comes with additional obligations and oversight.

"ChatGPT, Reddit and Roblox will now be held to a higher standard of scrutiny and accountability in the European Union, in line with their large impact on our citizens and society," EU technology chief Henna Virkkunen said.

The "very large" designation applies to platforms and search engines with more than 45 million monthly active users in the 27-nation bloc, a threshold ChatGPT, Reddit and Roblox reported meeting, the commission said.

The three now have four months to comply with additional obligations under the Digital Services Act (DSA), a content law that is a major weapon in the legal armory the EU has deployed to rein in Big Tech in recent years.

These include "assessing and mitigating the systemic risks stemming from their service and algorithmic systems related to the dissemination of illegal content, the negative effects on minors, users' physical and mental well-being, fundamental rights, electoral processes and public security," Brussels said.

To bring it under the DSA's regulatory umbrella, the commission qualified ChatGPT as a search engine.

Lena-Maria Boswald, of the German tech think tank Interface, said ahead of the announcement that the expected move would set a "precedent" and "influence the regulatory expectations for every large generative AI system used in the EU".

"OpenAI already has risk-management obligations under the AI Act, but the DSA could widen the scope," she said.

The widened scrutiny will also apply to Roblox, a gaming platform that lets people build their own games and share them with others, and Reddit, the popular online forum.

The designations come as the EU has stepped up regulatory enforcement against the world's biggest digital platforms, including many American ones, despite strong US pushback and threats of retaliation.

It recently told TikTok, one of the about 30 other listed platforms, to change what it deemed its addictive design or face heavy fines.

And last year it hit Elon Musk's social media platform X with a 120-million-euro ($138 million) fine for breaching transparency obligations and other violations.