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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)
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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.”

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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.