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PIF, Google Cloud Partner to Establish AI Hub in Saudi Arabia

The partnership will emphasize joint research on Arabic language models and Saudi-specific AI applications. - SPA
The partnership will emphasize joint research on Arabic language models and Saudi-specific AI applications. - SPA
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PIF, Google Cloud Partner to Establish AI Hub in Saudi Arabia

The partnership will emphasize joint research on Arabic language models and Saudi-specific AI applications. - SPA
The partnership will emphasize joint research on Arabic language models and Saudi-specific AI applications. - SPA

PIF and Google Cloud announced on Wednesday a strategic partnership to establish a global artificial intelligence (AI) hub near Dammam, in Saudi Arabia's Eastern Region.
According to a press release issued by the PIF, the landmark partnership, signed at the 8th edition of the Future Investment Initiative (FII8), further positions Saudi Arabia as a global AI hub and a top destination for enterprises and startups. This collaboration aims to enhance the Saudi workforce by offering AI programs to millions of students and professionals, supporting the national objective of growing the information and communication technology (ICT) sector by 50%.
Under this partnership, customers will be able to leverage Google Cloud’s technology to drive growth across industries and expand the capacity for AI application delivery. Businesses and their consumers can anticipate improved AI application quality and data services, delivered locally and with greater efficiency, SPA reported.
Subject to regulatory approvals, the partnership will emphasize joint research on Arabic language models and Saudi-specific AI applications. Enabled by Google Cloud’s substantial investment and expertise in custom silicon, this high-performance infrastructure will feature the latest tensor processing unit (TPU) and graphics processing unit (GPU) accelerators, along with the Vertex AI platform—Google Cloud’s specialized development environment for building generative AI applications.
The release added atht this collaboration underscores Saudi Arabia’s attractiveness for major tech initiatives. Investors are drawn to the nation’s strategic location at the crossroads of three continents, its advanced infrastructure, its access to fast-growing Middle Eastern markets, and the potential for reliable and affordable renewable energy to support the AI hub.
Governor of PIF Yasir Al-Rumayyan said, “We are delighted to welcome this new Google Cloud AI hub to Saudi Arabia. This partnership demonstrates PIF’s dedication to fostering an AI-friendly environment through investments in human capital and technology, upskilling thousands with cutting-edge tools to support our sustainable and innovative infrastructure goals. Saudi Arabia is a prime location for global tech partners, as PIF brings both sector expertise and a long-term approach to investment.”
Meanwhile, President and Chief Investment Officer of Alphabet and Google Ruth Porat added, “This strategic partnership will accelerate the adoption of AI in the local language and across industries—including healthcare, retail, financial services, and more—for enterprises and startups in Saudi Arabia, across the Middle East, Africa, and worldwide. As part of Saudi Arabia’s vibrant technology ecosystem, we aim to create highly skilled jobs for Saudis and provide opportunities for global businesses to drive growth through cloud adoption.”
Technology is one of PIF’s priority investment sectors, enabling critical areas of the economy, including entertainment, financial services, healthcare, transportation, logistics, utilities, and renewables. PIF’s telecom, communications, and technology investments include the Saudi Information Technology Company (SITE), which delivers digital and cyber services through national talent, and iot squared, a company specializing in the Internet of Things.
To advance Arabic-language models, PIF and Google Cloud will explore enhancing the Arabic-language capabilities of Gemini, Google’s generative AI model family, by integrating additional Arabic datasets with Google Cloud’s technology. This will provide local businesses, researchers, and developers the opportunity to incorporate these models into their systems, enabling sophisticated Arabic-language AI agents and applications.
Preliminary research commissioned by Google Cloud and conducted by tech policy advisory firm Access Partnership estimates the new AI hub could contribute a cumulative $71 billion to Saudi Arabia’s GDP over eight years. Increased economic activity from AI adoption is expected to support the creation of thousands of highly skilled direct and indirect jobs.
These investments expand on Google Cloud’s existing presence in Saudi Arabia, which includes the Dammam cloud region, launched last year as part of Google Cloud’s global network of 40 regions.

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Technology

Nvidia, Joining Big Tech Deal Spree, to License Groq Technology, Hire Executives

The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
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Nvidia, Joining Big Tech Deal Spree, to License Groq Technology, Hire Executives

The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)

Nvidia has agreed to license chip technology from startup Groq and hire away its CEO, a veteran of Alphabet's Google, Groq said in a blog post on Wednesday.

The deal follows a familiar pattern in recent years where the world's biggest technology firms pay large sums in deals with promising startups to take their technology and talent but stop short of formally acquiring the target.

Groq specializes in what is known as inference, where artificial intelligence models that have already been trained respond to requests from users. While Nvidia dominates the market for training AI models, it faces much more competition in inference, where traditional rivals such as Advanced Micro Devices have aimed ‌to challenge it ‌as well as startups such as Groq and Cerebras Systems.

Nvidia ‌has ⁠agreed to a "non-exclusive" ‌license to Groq's technology, Groq said. It said its founder Jonathan Ross, who helped Google start its AI chip program, as well as Groq President Sunny Madra and other members of its engineering team, will join Nvidia.

A person close to Nvidia confirmed the licensing agreement.

Groq did not disclose financial details of the deal. CNBC reported that Nvidia had agreed to acquire Groq for $20 billion in cash, but neither Nvidia nor Groq commented on the report. Groq said in its blog post that it will continue to ⁠operate as an independent company with Simon Edwards as CEO and that its cloud business will continue operating.

In similar recent deals, Microsoft's ‌top AI executive came through a $650 million deal with a startup ‍that was billed as a licensing fee, and ‍Meta spent $15 billion to hire Scale AI's CEO without acquiring the entire firm. Amazon hired ‍away founders from Adept AI, and Nvidia did a similar deal this year. The deals have faced scrutiny by regulators, though none has yet been unwound.

"Antitrust would seem to be the primary risk here, though structuring the deal as a non-exclusive license may keep the fiction of competition alive (even as Groq’s leadership and, we would presume, technical talent move over to Nvidia)," Bernstein analyst Stacy Rasgon wrote in a note to clients on Wednesday after Groq's announcement. And Nvidia CEO Jensen Huang's "relationship with ⁠the Trump administration appears among the strongest of the key US tech companies."

Groq more than doubled its valuation to $6.9 billion from $2.8 billion in August last year, following a $750 million funding round in September.

Groq is one of a number of upstarts that do not use external high-bandwidth memory chips, freeing them from the memory crunch affecting the global chip industry. The approach, which uses a form of on-chip memory called SRAM, helps speed up interactions with chatbots and other AI models but also limits the size of the model that can be served.

Groq's primary rival in the approach is Cerebras Systems, which Reuters this month reported plans to go public as soon as next year. Groq and Cerebras have signed large deals in the Middle East.

Nvidia's Huang spent much of his biggest keynote speech of 2025 arguing that ‌Nvidia would be able to maintain its lead as AI markets shift from training to inference.

Technology

Italy Watchdog Orders Meta to Halt WhatsApp Terms Barring Rival AI Chatbots

The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
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Italy Watchdog Orders Meta to Halt WhatsApp Terms Barring Rival AI Chatbots

The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)

Italy's antitrust authority (AGCM) on Wednesday ordered Meta Platforms to suspend contractual terms ​that could shut rival AI chatbots out of WhatsApp, as it investigates the US tech group for suspected abuse of a dominant position.

A spokesperson for Meta called the decision "fundamentally flawed," and said the emergence of AI chatbots "put a strain on our systems that ‌they were ‌not designed to support".

"We ‌will ⁠appeal," ​the ‌spokesperson added.

The move is the latest in a string by European regulators against Big Tech firms, as the EU seeks to balance support for the sector with efforts to curb its expanding influence.

Meta's conduct appeared capable of restricting "output, market ⁠access or technical development in the AI chatbot services market", ‌potentially harming consumers, AGCM ‍said.

In July, the ‍Italian regulator opened the investigation into Meta over ‍the suspected abuse of a dominant position related to WhatsApp. It widened the probe in November to cover updated terms for the messaging app's business ​platform.

"These contractual conditions completely exclude Meta AI's competitors in the AI chatbot services ⁠market from the WhatsApp platform," the watchdog said.

EU antitrust regulators launched a parallel investigation into Meta last month over the same allegations.

Europe's tough stance - a marked contrast to more lenient US regulation - has sparked industry pushback, particularly by US tech titans, and led to criticism from the administration of US President Donald Trump.

The Italian watchdog said it was coordinating with the European ‌Commission to ensure Meta's conduct was addressed "in the most effective manner".

Technology

Amazon Says Blocked 1,800 North Koreans from Applying for Jobs

Amazon logo (Reuters)
Amazon logo (Reuters)
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Amazon Says Blocked 1,800 North Koreans from Applying for Jobs

Amazon logo (Reuters)
Amazon logo (Reuters)

US tech giant Amazon said it has blocked over 1,800 North Koreans from joining the company, as Pyongyang sends large numbers of IT workers overseas to earn and launder funds.

In a post on LinkedIn, Amazon's Chief Security Officer Stephen Schmidt said last week that North Korean workers had been "attempting to secure remote IT jobs with companies worldwide, particularly in the US".

He said the firm had seen nearly a one-third rise in applications by North Koreans in the past year, reported AFP.

The North Koreans typically use "laptop farms" -- a computer in the United States operated remotely from outside the country, he said.

He warned the problem wasn't specific to Amazon and "is likely happening at scale across the industry".

Tell-tale signs of North Korean workers, Schmidt said, included wrongly formatted phone numbers and dodgy academic credentials.

In July, a woman in Arizona was sentenced to more than eight years in prison for running a laptop farm helping North Korean IT workers secure remote jobs at more than 300 US companies.

The scheme generated more than $17 million in revenue for her and North Korea, officials said.

Last year, Seoul's intelligence agency warned that North Korean operatives had used LinkedIn to pose as recruiters and approach South Koreans working at defense firms to obtain information on their technologies.

"North Korea is actively training cyber personnel and infiltrating key locations worldwide," Hong Min, an analyst at the Korea Institute for National Unification, told AFP.

"Given Amazon's business nature, the motive seems largely economic, with a high likelihood that the operation was planned to steal financial assets," he added.

North Korea's cyber-warfare program dates back to at least the mid-1990s.

It has since grown into a 6,000-strong cyber unit known as Bureau 121, which operates from several countries, according to a 2020 US military report.

In November, Washington announced sanctions on eight individuals accused of being "state-sponsored hackers", whose illicit operations were conducted "to fund the regime's nuclear weapons program" by stealing and laundering money.

The US Department of the Treasury has accused North Korea-affiliated cybercriminals of stealing over $3 billion over the past three years, primarily in cryptocurrency.