IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
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IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock

Digital sovereignty in Saudi Arabia is no longer just about where data is stored. It is now about who controls the infrastructure, models, operations, keys, and digital supply chains when conditions change.

That question dominated an IBM roundtable on digital sovereignty in the Kingdom, as Saudi Arabia accelerates the digital agenda of Vision 2030 and raises its ambitions in artificial intelligence, cloud infrastructure, operational resilience, and governance.

A gap between awareness and readiness

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. But the discussion pointed to a much lower level of actual readiness, with participants saying only “two to three out of every 10” clients in the Kingdom are adequately prepared.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia, said the debate is no longer theoretical or something to postpone. It is “a discussion happening today,” he said.

The gap, he said, is not about awareness. It is about the distance between believing sovereignty belongs in strategy and having the ability to execute it. Many organizations, he added, still approach sovereignty in traditional terms, asking “where is the data?” and “where is the computing?” even as the issue has become far wider.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia (IBM)

A Saudi study by the IBM Institute for Business Value found that 63% of Saudi leaders are concerned about reliance on specific regions for computing resources, above the global average. Another 85% believe geopolitical and economic issues threaten technology investments.

At the same time, 73% of Saudi leaders believe that geopolitical volatility could create new business opportunities in 2026 if organizations adapt.

Sovereignty is not just location

During the session, attended by Asharq Al-Awsat, Sabine Holl, IBM’s vice president of technical sales and chief technology officer for the Middle East and Africa, said sovereignty has moved from a regulatory demand to a strategic priority.

Holl said the debate began with data sovereignty, whether data was located inside or outside the country. But recent events, including data center outages and geopolitical tensions, have shown that location alone does not guarantee control.

Digital sovereignty, she said, is now tied to control over data, infrastructure and technology development.

IBM divides the concept into four pillars: operational sovereignty, data sovereignty, technology sovereignty and AI sovereignty. In that sense, sovereignty is no longer merely compliance with local data-residency rules. It is the continuing ability to know who can access systems, who manages the environment, where models run and how an organization can prove compliance when needed.

Holl put it plainly: Sovereignty is not just about location.

The question, she said, is not only whether data is stored in a local data center. It is who can control it, under which identity it can be decrypted and whether the organization has a recovery and operating plan if a regional outage or sudden crisis hits.

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. Shutterstock

AI complicates the equation

AI makes the issue harder. Models and agents do not simply store or read data. They can access multiple sources, interpret information, suggest decisions or take action inside an organization’s systems.

That changes the sovereignty question. Does an organization control only where its data sits, or does it also control what AI does with that data?

That explains IBM’s focus on what it calls a new operating model for AI. The company says organizations advancing in AI are not merely deploying more tools. They are redesigning how they work. IBM says the model rests on four connected systems: agents, data, automation and hybrid.

In this context, IBM announced the next generation of Watsonx Orchestrate to coordinate and manage AI agents across different environments, along with capabilities linked to real-time data through Confluent, watsonx.data, IBM Concert for intelligent operations and IBM Sovereign Core for operational sovereignty.

During the session, Asharq Al-Awsat asked whether sovereignty becomes harder when agents enter enterprise workflows, because data is no longer only stored, but also used, interpreted and acted upon.

Holl said organizations now face a reality in which agents are spreading “everywhere,” inside their own environments and on other platforms, making “supervision” and auditability essential. She said part of IBM’s operating model includes what she described as an “agent control layer” to manage and monitor those agents.

From cloud to operational sovereignty

IBM sees a hybrid cloud strategy as central to building sovereignty.

Holl said cloud changed how sovereignty is viewed, especially in the Middle East and Africa, where laws and requirements on data access and use emerged early. That helped shape IBM’s hybrid cloud strategy, she said, so that the benefits of cloud are not limited to public environments, but can also apply to private clouds and on-premises systems.

The “promise of cloud,” built on the idea that everything would move to the cloud, has not fully materialized, Holl said. Many organizations still operate across hybrid and multi-cloud environments without sufficient transparency or clear audit and control capabilities.

If an organization cannot answer “at the push of a button” where systems are running, who controls them and whether they comply with requirements, then it is not truly sovereign, she said.

IBM calls this “sovereignty by design.”

Holl said an existing environment cannot simply be patched later to become sovereign. She compared it to a small boat on a lake, saying it cannot simply be repaired into a ship capable of crossing an ocean and facing a storm.

In practice, that means sovereignty must be built into the architecture from the start, through portability, choice, open platforms, recovery plans and control over keys and identities.

IBM says human skills are the currency of the AI economy. Shutterstock

Turning sovereignty into operations

IBM says IBM Sovereign Core is designed to operationalize and verify digital sovereignty, rather than just a written policy.

The company describes it as a platform that helps governments, organizations and service providers build AI-ready sovereign environments, with the ability to prove control and compliance across hybrid settings.

Dinesh Nirmal, senior vice president, products, software at IBM, said AI has made sovereignty “a runtime requirement, not a policy statement.”

AlRashed said that as AI becomes part of institutional and national strategies, organizations need to innovate “without compromising operational authority, trust or regulatory requirements.”

The platform includes a customer-managed control layer, identity services, encryption, data within sovereign boundaries, continuous compliance monitoring, automated audit evidence, prebuilt regulatory frameworks and controlled deployment of AI models, inference and agents within defined sovereign limits.

It also relies on open technologies, including Red Hat OpenShift and Red Hat AI, and supports a partner ecosystem that includes AMD, Dell, Mistral, MongoDB and Palo Alto Networks.

Holl said the point is not that every organization must build a local server or chip. It is that organizations must be able to choose and move between components and environments when conditions change.

Shortages of graphics processing units, memory and chips could become a sovereignty risk, she said, if an organization is locked into one supplier or an architecture it cannot replace.

Resilience is part of sovereignty

A key theme in the discussion was that sovereignty cannot be separated from operational resilience. An organization that cannot recover from an outage, cyberattack or geopolitical crisis does not, in practice, have the control it believes it has.

Holl said some backup and disaster recovery strategies failed because they were not seriously tested or treated as an operational necessity rather than a useful option.

In Saudi Arabia, the issue is gaining weight as digital transformation expands across sensitive sectors, including government, energy, finance, telecommunications and health care.

Participants said some entities, especially government bodies, are no longer just waiting for policies to be completed. They are moving practically to shift workloads to sovereign providers, or to ensure that those managing environments are located inside the Kingdom.

Sovereignty and human skills

The discussion was not limited to technology. AlRashed linked digital sovereignty to people, saying AI cannot deliver value without skills and trust in systems.

“Human skills are the currency of the AI economy,” he said. Some organizations, he added, deploy AI but fail to achieve the expected value because users lack the confidence or ability to benefit from it.

That adds another layer to the Saudi debate. Sovereignty is not only about who owns the data center or cloud platform. It is also about who operates it, who understands the risks, who can prove compliance and who can change course when rules, markets or threats shift.

In IBM’s 2026 trends report, 88% of Saudi executives said agentic AI helps them make better, faster decisions during disruption.

But that optimism creates a parallel challenge. The more agents can support decisions or carry out tasks, the greater the need for clear governance, auditing, lifecycle management for models and agents and the ability to stop or adjust what is not working as required.

A Saudi model taking shape

Saudi Arabia appears to occupy a distinct place in this debate. Holl described it as an example of a market building local data centers and working with global cloud providers to bring technology into the country, allowing innovation within local regulatory frameworks.

At the same time, the figures show that concern about external dependence on computing, chips and global providers is greater than the global average.

The debate, then, is not about choosing between full isolation and full openness. It is about building a model that balances access to global innovation with local control, the ability to prove compliance and the operation of AI within clear boundaries.

In this context, digital sovereignty becomes part of the operating architecture of the digital economy, not just a legal clause or regulatory requirement.

As AI moves from pilots to operations, and from models to agents, the question raised by the session becomes more urgent for Saudi organizations: Do they merely have data inside their borders, or do they have full control over what happens to that data, who uses it, how models and agents operate on it and what happens when conditions change?



Fear and Anger Brew Inside Meta amid AI Frenzy

The word "Hack" is seen in this aerial view of Meta's corporate headquarter offices in Menlo Park, California. JOSH EDELSON / AFP
The word "Hack" is seen in this aerial view of Meta's corporate headquarter offices in Menlo Park, California. JOSH EDELSON / AFP
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Fear and Anger Brew Inside Meta amid AI Frenzy

The word "Hack" is seen in this aerial view of Meta's corporate headquarter offices in Menlo Park, California. JOSH EDELSON / AFP
The word "Hack" is seen in this aerial view of Meta's corporate headquarter offices in Menlo Park, California. JOSH EDELSON / AFP

A frenzied push for artificial intelligence dominance comes with a different kind of cost for Meta, where massive layoffs, employee surveillance and departures have fueled reports of a heated internal climate.

As Meta spends billions annually to build out its AI capabilities, employees at Facebook, Instagram and WhatsApp are increasingly unhappy with their Mark Zuckerberg-led parent company, AFP reported.

Meta employees have weathered frequent layoffs since early 2025, including this spring when the company cut 10 percent of its workforce -- some 8,000 jobs -- and reshuffled another 7,000 employees.

For those who remain, an internal AI training initiative has drawn accusations of surveillance.

The company also underwent a major reorganization of its AI research division, into which Zuckerberg, Meta's founder and chief executive, has poured billions of dollars.

The malaise stands in stark contrast to Meta's robust finances -- driven by advertising, which makes up nearly 98 percent of its revenue. In the first three months of 2026, Meta's net income rose to more than $26 billion.

However, the bill for its AI investments is also exploding, prompting Zuckerberg, who has near-absolute power over the company, to impose sweeping cuts and increased monitoring of employees in the name of efficiency and savings.

The cuts are funding a massive race for infrastructure: Meta plans to spend up to $145 billion on AI investments this year, nearly twice last year's figure.

Harvesting data

After thousands of employees were reassigned to Meta's AI division, some, speaking anonymously to US media, have complained of "mind-numbing" tasks designed to train machines, or even automate away their own jobs.

That controversial program, called the Model Capability Initiative, was rolled out in April and suspended on June 22. It captured clicks, keystrokes and browsing activity of US employees to train AI agents -- software capable of independently performing tasks.

Zuckerberg, who has made AI the company's North Star, defended the program during an internal meeting: "AI models learn by watching really smart people do things," he said, according to Wired.

But the tool sparked a revolt. More than 1,600 employees signed a petition calling for it to end, with some likening the company to a "data extraction factory," according to media reports.

The pause came after private conversations, and performance data inadvertently became accessible to all staff. The system risked drawing the attention of European regulators, since it captured exchanges between employees on both continents.

In a statement to AFP Tuesday, a Meta spokesperson said the program was designed with privacy safeguards.

"While we have no indication at this time that any data was improperly accessed by Meta employees, we're pausing it while we investigate," the statement said.

One employee summed up the mood with a meme from "The Office," posted on an internal company forum, reading: "0 days since our last nonsense."

'Dead end quest'

All of these efforts aim to make up for a persistent lag behind Google, OpenAI and Anthropic, which dominate the race for cutting-edge AI models. Meta's own models, repeatedly delayed, have proved disappointing even internally.

To regain ground, Zuckerberg invested over $14 billion last year into Scale AI, a San Francisco-based startup, and poached its CEO Alexandr Wang -- who was 28 years old at the time -- to run a "superintelligence" lab inside Meta.

The expensive bet has yet to win people over. Several key figures have since walked out, among them Yann LeCun, considered one of the "godfathers" of modern AI, who had led Meta's AI research since 2013.

LeCun suddenly found himself reporting to Wang, more than 35 years his junior. He left Meta at the end of 2025 to launch his own startup.

In an interview with the Financial Times, the Turing Award winner lamented that, although "he learns fast," Wang has "no experience with research" and was on "a dead end" quest.

The stakes for Meta go beyond its social networks now. The company is also doubling down on consumer electronics with smart glasses and is considering a new prediction-market app called Arena, potentially in partnership with Polymarket and Kalshi, according to The New York Times.

Lawsuits also threaten to consume time and resources.

For the first time, a Los Angeles jury in March found Meta liable for the effects of social media addiction, just one day after a separate ruling in New Mexico said Meta had failed to protect minors.

Meta has appealed, but more lawsuits are expected this year.


South Korean Trade Watchdog Alleges Google Abused Its Position in Android App Store

A pedestrian walks past the Google offices in London, Britain, August 14, 2025. (Reuters)
A pedestrian walks past the Google offices in London, Britain, August 14, 2025. (Reuters)
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South Korean Trade Watchdog Alleges Google Abused Its Position in Android App Store

A pedestrian walks past the Google offices in London, Britain, August 14, 2025. (Reuters)
A pedestrian walks past the Google offices in London, Britain, August 14, 2025. (Reuters)

South Korea's antitrust regulator alleged on Wednesday that Alphabet's Google abused its dominant position in the Android app marketplace to hinder competition and will recommend corrective measures and a financial penalty.

The Korea Fair Trade Commission's (KFTC) Market Surveillance Bureau found Google's alleged abuse of market dominance in the Android app marketplace affected 14.16 trillion won ($9.1 billion) in revenue, the bureau said in a media briefing where it released its examiner's report on the matter.

From July ‌2019 to March ‌2026, Google's Games/Google Velocity Program, which it ‌internally ⁠called "Project Hug", offered domestic ⁠and overseas game developers financial support for using Google services such as Cloud, Ads and YouTube, provided that they launched games on Google's app store on terms at least as favorable as rival app marketplaces, the report said.

The contracts were also structured so that Google's financial ⁠support increased progressively as developers generated more ‌revenue through Google Play, creating ‌stronger incentives to prioritize Google's marketplace.

The program significantly reduced developers' ‌incentives to distribute games through competing app stores, including South ‌Korea's OneStore, blocking rivals' business activities and forcing developers into de facto exclusive dealing with Google, according to the report.

"Google Play competes fairly with other app stores and delivers numerous benefits ‌to developers and consumers in Korea.

"We have cooperated diligently with the KFTC's investigation, and ⁠we will ⁠continue to show the Commissioners that there has been no violation of the law,” Google said in a statement to Reuters.

If the commission ultimately concludes that Google abused its market dominance, it may impose a fine of up to 6% of the relevant affected revenue of $9.1 billion.

Google has eight weeks from receiving the examiner's report to submit a written response and review the evidence.

The bureau said it plans to convene the full commission and issue a final ruling promptly once Google's due process rights have been fully observed.


US Govt Lifts Restrictions on Powerful AI Models, Anthropic Says

FILED - 06 May 2026, US, San Francisco: FILE PHOTO - The logo of the Artificial intelligence company Anthropic is on display at an event hosted by the company. Photo: Andrej Sokolow/dpa
FILED - 06 May 2026, US, San Francisco: FILE PHOTO - The logo of the Artificial intelligence company Anthropic is on display at an event hosted by the company. Photo: Andrej Sokolow/dpa
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US Govt Lifts Restrictions on Powerful AI Models, Anthropic Says

FILED - 06 May 2026, US, San Francisco: FILE PHOTO - The logo of the Artificial intelligence company Anthropic is on display at an event hosted by the company. Photo: Andrej Sokolow/dpa
FILED - 06 May 2026, US, San Francisco: FILE PHOTO - The logo of the Artificial intelligence company Anthropic is on display at an event hosted by the company. Photo: Andrej Sokolow/dpa

Anthropic will soon begin restoring access globally to its most powerful AI models, Fable 5 and Mythos 5, after the US government lifted a restriction on where they could be released, the company said Tuesday.

Over the past couple of weeks, the Trump administration has invoked national security concerns to limit the ability of major US tech companies to release advanced models, including those from Anthropic which some researchers feared could be exploited to bypass cybersecurity measures.

"We've received notice that the Department of Commerce has lifted export controls on Claude Fable 5 and Mythos 5," Anthropic posted on X. "We'll begin restoring access tomorrow."

Just four days ago, the company said it had received authorization from the government to allow a small group of American cybersecurity firms to access Mythos 5.

Secretary of Commerce Howard Lutnick said in a June 26 letter to the company that "Anthropic has worked with the US government to address risks associated with the Covered Models," Politico reported.

The government abruptly forced Anthropic to cut off access to its two cutting-edge artificial intelligence models on June 12 after discovering vulnerabilities in the safeguards put in place to prevent misuse of the tool.

On Tuesday, Lutnick told Anthropic in a letter that the Trump administration had "withdrawn" its previous restrictions on the release of the company's models, Politico reported.

The letter indicated that the Trump administration was satisfied, at least for now, that Anthropic had "taken steps in close coordination with the US government to address the risks associated with Claude Mythos 5 and Claude Fable 5."

Like Anthropic, rival AI lab OpenAI has also complied with Washington's requests to restrict its own release of a new, powerful model called GPT-5.6 to a limited set of approved partners.

"This isn't quite the process that we think is optimal," OpenAI CEO Sam Altman said Friday in a post on X, alongside an explanation of the GPT-5.6 launch.

Anthropic did not immediately respond to a request for comment Tuesday.

However, in a blog post published Tuesday evening, Anthropic called for the development of a standardized "framework" to both assess critical vulnerabilities in advanced models and respond to them.

The San Francisco-based AI lab will work with Amazon, Microsoft, Google and others on the effort.

"This problem will become more acute in the coming months, as more models with powerful cybersecurity (and other) capabilities are trained, assessed, and released," the blog post said.

- New frontiers -

The Trump administration issued an executive order on June 2 calling for the federal government to take multiple steps over the subsequent two months to take actions on AI and cybersecurity -- including creating a voluntary "framework" for private companies, such as Anthropic and OpenAI, to test and release their powerful "frontier" AI models in collaboration with the government.

Susie Wiles, the president's chief of staff, posted Tuesday on X that the Trump administration was grateful for the cooperation from tech companies, though she didn't name any.

"My gratitude to companies across industries who continue to work closely with the White House to implement the President's" executive order on AI and cybersecurity, Wiles said. "This includes excellent work around advanced model access and guardrail testing and security."

Earlier in the day, CIA Director John Ratcliffe compared the capabilities of the most advanced artificial intelligence models to nuclear weapons, in a tacit defense of the Trump administration's recent hard line on controlling the release of the most powerful AI technology.

"In conversations with many of the president's other national security and economic security advisors, we're talking about the impact of these frontier AI models," Ratcliffe said during a speech at the AWS summit in Washington.

"It would be...not misplaced to refer to their capabilities as akin to digital nuclear weapons," Ratcliffe said.