IBM Announces Agreement with Amazon Web to Fuel Innovation, Cloud Adoption Across Middle East 

The announcement of the agreement was made in Riyadh on Monday. (Asharq Al-Awsat)
The announcement of the agreement was made in Riyadh on Monday. (Asharq Al-Awsat)
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IBM Announces Agreement with Amazon Web to Fuel Innovation, Cloud Adoption Across Middle East 

The announcement of the agreement was made in Riyadh on Monday. (Asharq Al-Awsat)
The announcement of the agreement was made in Riyadh on Monday. (Asharq Al-Awsat)

IBM announced on Monday an expanded strategic collaboration agreement (SCA) with Amazon Web Services (AWS) to accelerate secure cloud adoption and digital transformation across the Middle East. The agreement will leverage IBM Consulting’s deep industry expertise, AI and hybrid cloud technology leadership, alongside the cloud capabilities of Amazon, to accelerate digital transformation, said IBM in a statement.

The demand for cloud services is rapidly growing, driven by emerging use cases in generative AI (GenAI), machine learning, and the Internet of Things (IoT). Across the Middle East, the cloud computing market is booming, with sectors such as e-government, public, healthcare, retail, banking, and manufacturing leading the charge.

In Saudi Arabia and the UAE, bold digital transformation agendas such as Saudi Vision 2030 and the UAE Digital Economy Strategy are driving both governments and enterprises to accelerate cloud adoption, invest in GenAI, and modernize national infrastructure. The goal is to boost productivity, enable new business models, and enhance customer experiences.

As a result, organizations are increasingly turning to public cloud providers and trusted partners with a proven track record to help accelerate their digital transformation and maximize business value.

The collaboration between IBM and AWS is designed to accelerate technology transformation across the region, combining deep industry expertise with joint investments in go-to-market and delivery capabilities. Building on IBM Consulting’s Global AWS Practice and its strong credentials including market-leading competencies in cloud migration, data platform modernization, and responsible GenAI across multiple industries, the collaboration with AWS aims to help regional clients modernize their operations and unlock new value.

As part of the collaboration, the companies will explore the establishment of the first IBM-AWS joint Innovation Hub in Riyadh, designed to showcase the companies’ combined capabilities. The intended hub will enable customers to explore proofs of concept, identify new transformational opportunities, and gain hands-on experience with the latest cloud technologies and industry solutions, including IBM’s advanced technologies, such as watsonx.

The Innovation Hub in Riyadh would build on successful global models that IBM and AWS have established in India and Romania, and will be tailored to the needs of public and private sector innovators in the Middle East.

IBM intends to invest in expanding its AWS Practice capabilities across technical and delivery skills across the region, including talent development in Saudi Arabia and UAE and the certification of local practitioners. This expanded pool of skilled professionals will be crucial in helping organizations navigate complex cloud transformations, from initial strategy through to implementation and optimization.

To catalyze growth in the Middle East, AWS will support IBM in developing new solutions on AWS and localizing impactful global offerings such as Contact Center Intelligence, Autonomous Security Compliance, Supply Chain Ensemble, Oil & Gas analytics, Smart Government, and AI-powered citizen engagement tools. These solutions will help organizations align with national priorities around economic diversification and sustainability, while accelerating cloud adoption through targeted migrations, modernization initiatives, and industry-specific use cases.

The collaboration will also focus on sustainability initiatives aligned with key regional priorities such as the Saudi Green Initiative and the UAE’s sustainability vision. Through IBM’s global expertise and localized solutions such as IBM Consulting’s Sustainability Disclosure Assist and Sustainable Product Ledger for Oil & Gas, organizations can modernize IT infrastructure while advancing net-zero and environmental, social, and governance factors (ESG) mandates.

“This collaboration represents a significant milestone in IBM’s commitment to helping organizations across the Middle East, especially in Saudi Arabia and the UAE, realize their digital transformation ambitions,” said Lula Mohanty, Managing Partner - Middle East and Africa at IBM Consulting. “Our partnership with AWS will help organizations leverage the power of cloud technologies while building critical technical capabilities in the region.”

“Our collaboration with IBM will enable businesses and governments across the Middle East to adopt breakthrough technologies at scale, while reinventing core processes with AI,” said Tanuja Randery, Managing Director and Vice President EMEA at AWS. “This will enable organizations to access new levels of agility and resilience through the cloud.”



Siemens Energy Trebles Profit as AI Boosts Power Demand

FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
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Siemens Energy Trebles Profit as AI Boosts Power Demand

FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa
FILED - 05 August 2025, Berlin: The "Siemens Energy" logo can be seen in the entrance area of the company. Photo: Britta Pedersen/dpa

German turbine maker Siemens Energy said Wednesday that its quarterly profits had almost tripled as the firm gains from surging demand for electricity driven by the artificial intelligence boom.

The company's gas turbines are used to generate electricity for data centers that provide computing power for AI, and have been in hot demand as US tech giants like OpenAI and Meta rapidly build more of the sites.

Net profit in the group's fiscal first quarter, to end-December, climbed to 746 million euros ($889 million) from 252 million euros a year earlier.

Orders -- an indicator of future sales -- increased by a third to 17.6 billion euros.

The company's shares rose over five percent in Frankfurt trading, putting the stock up about a quarter since the start of the year and making it the best performer to date in Germany's blue-chip DAX index.

"Siemens Energy ticked all of the major boxes that investors were looking for with these results," Morgan Stanley analysts wrote in a note, adding that the company's gas turbine orders were "exceptionally strong".

US data center electricity consumption is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for six to eight percent of US electricity use.

Asked about rising orders on an earnings call, Siemens Energy CEO Christian Bruch said he thought the first-quarter figures were not "particularly strong" and that further growth could be expected.

"Demand for gas turbines is extremely high," he said. "We're talking about 2029 and 2030 for delivery dates."

Siemens Energy, spun out of the broader Siemens group in 2020, said last week that it would spend $1 billion expanding its US operations, including a new equipment plant in Mississippi as part of wider plans that would create 1,500 jobs.

Its shares have increased over tenfold since 2023, when the German government had to provide the firm with credit guarantees after quality problems at its wind-turbine unit.


Instagram Boss to Testify at Social Media Addiction Trial 

The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
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Instagram Boss to Testify at Social Media Addiction Trial 

The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)
The Instagram app icon is seen on a smartphone in this illustration taken October 27, 2025. (Reuters)

Instagram chief Adam Mosseri is to be called to testify Wednesday in a Los Angeles courtroom by lawyers out to prove social media is dangerously addictive by design to young, vulnerable minds.

YouTube and Meta -- the parent company of Instagram and Facebook -- are defendants in a blockbuster trial that could set a legal precedent regarding whether social media giants deliberately designed their platforms to be addictive to children.

Rival lawyers made opening remarks to jurors this week, with an attorney for YouTube insisting that the Google-owned video platform was neither intentionally addictive nor technically social media.

"It's not social media addiction when it's not social media and it's not addiction," YouTube lawyer Luis Li told the 12 jurors during his opening remarks.

The civil trial in California state court centers on allegations that a 20-year-old woman, identified as Kaley G.M., suffered severe mental harm after becoming addicted to social media as a child.

She started using YouTube at six and joined Instagram at 11, before moving on to Snapchat and TikTok two or three years later.

The plaintiff "is not addicted to YouTube. You can listen to her own words -- she said so, her doctor said so, her father said so," Li said, citing evidence he said would be detailed at trial.

Li's opening arguments followed remarks on Monday from lawyers for the plaintiffs and co-defendant Meta.

On Monday, the plaintiffs' attorney Mark Lanier told the jury YouTube and Meta both engineer addiction in young people's brains to gain users and profits.

"This case is about two of the richest corporations in history who have engineered addiction in children's brains," Lanier said.

"They don't only build apps; they build traps."

But Li told the six men and six women on the jury that he did not recognize the description of YouTube put forth by the other side and tried to draw a clear line between YouTube's widely popular video app and social media platforms like Instagram or TikTok.

YouTube is selling "the ability to watch something essentially for free on your computer, on your phone, on your iPad," Li insisted, comparing the service to Netflix or traditional TV.

Li said it was the quality of content that kept users coming back, citing internal company emails that he said showed executives rejecting a pursuit of internet virality in favor of educational and more socially useful content.

- 'Gateway drug' -

Stanford University School of Medicine professor Anna Lembke, the first witness called by the plaintiffs, testified that she views social media, broadly speaking, as a drug.

The part of the brain that acts as a brake when it comes to having another hit is not typically developed before a person is 25 years old, Lembke, the author of the book "Dopamine Nation," told jurors.

"Which is why teenagers will often take risks that they shouldn't and not appreciate future consequences," Lembke testified.

"And typically, the gateway drug is the most easily accessible drug," she said, describing Kaley's first use of YouTube at the age of six.

The case is being treated as a bellwether proceeding whose outcome could set the tone for a wave of similar litigation across the United States.

Social media firms face hundreds of lawsuits accusing them of leading young users to become addicted to content and suffer from depression, eating disorders, psychiatric hospitalization, and even suicide.

Lawyers for the plaintiffs are borrowing strategies used in the 1990s and 2000s against the tobacco industry, which faced a similar onslaught of lawsuits arguing that companies knowingly sold a harmful product.


OpenAI Starts Testing Ads in ChatGPT

The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Starts Testing Ads in ChatGPT

The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
The OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI has begun placing ads in the basic versions of its ChatGPT chatbot, a bet that users will not mind the interruptions as the company seeks revenue as its costs soar.

"The test will be for logged-in adult users on the Free and Go subscription tiers" in the United States, OpenAI said Monday. The Go subscription costs $8 in the United States.

Only a small percentage of its nearly one billion users pay for its premium subscription services, which will remain ad-free.

"Ads do not influence the answers ChatGPT gives you, and we keep your conversations with ChatGPT private from advertisers," the company said.

Since ChatGPT's launch in 2022, OpenAI's valuation has soared to $500 billion in funding rounds -- higher than any other private company. Some analysts expect it could go public with a trillion-dollar valuation.

But the ChatGPT maker burns through cash at a furious rate, mostly on the powerful computing required to deliver its services.

Its chief executive Sam Altman had long expressed his dislike for advertising, citing concerns that it could create distrust about ChatGPT's content.

His about-face garnered a jab from its rival Anthropic over the weekend, which made its advertising debut at the Super Bowl championship with commercials saying its Claude chatbot would stay ad-free.