Brookfield Asset Management has announced a $100 billion AI initiative in collaboration with Nvidia and the Kuwait Investment Authority (KIA). This massive undertaking aims to develop and deploy significant AI infrastructure globally. The partnership brings together a major global investment firm, a leading AI chip manufacturer, and a prominent sovereign wealth fund from the Middle East. Why it matters: This substantial investment signifies a major commitment from a GCC sovereign wealth fund to accelerate global AI development and infrastructure, leveraging top-tier international partnerships.
Saudi Arabia is reportedly investing $900 million into WME, a Hollywood talent agency, to develop its AI capabilities. The Saudi Public Investment Fund (PIF) is leading the investment through its SRJ Sports Investments arm. WME plans to build AI tools to better predict audience behavior and streamline film production. Why it matters: The deal provides Saudi Arabia with a stake in the future of entertainment AI, aligning with its broader Vision 2030 goals of diversifying the economy.
KAUST has unveiled Shaheen III, the most powerful supercomputer in the Middle East and 18th globally, built by HPE. The system uses 2,800 NVIDIA GH200 Grace Hopper Superchips, tripling the processing power of its predecessor. Shaheen III will support research in Arabic LLMs, climate modeling, remote sensing, automated chemistry, and AI-driven healthcare. Why it matters: This infrastructure investment strengthens Saudi Arabia's position in AI and computational research, enabling advances tailored to the region's needs and priorities.
KAUST startups have raised over $1 billion in total investments, generated $925 million in revenue, and created 6,661 jobs to date, with a total valuation exceeding $2 billion. In 2024 alone, these startups raised $150 million, demonstrating investor confidence in Saudi Arabia’s innovation ecosystem. KAUST Innovation Ventures focuses on co-investments with local and international venture capital firms. Why it matters: This milestone signals the growing maturity and global competitiveness of Saudi Arabia's deep tech sector, supporting Vision 2030 by attracting investment and creating high-tech jobs.
Microsoft is investing $1.5 billion in G42 to accelerate AI development in the UAE. This investment includes bringing Microsoft’s latest AI technologies and skilling initiatives to the UAE. The partnership also involves a strong focus on AI safety and security. Why it matters: This represents a significant commitment to the UAE's AI ecosystem and positions the country as a major hub for AI innovation in the region.
Researchers at MBZUAI introduce "Interactive Video Reasoning," a new paradigm enabling models to actively "think with videos" by performing iterative visual actions to gather and refine evidence. They developed Video CoM, which reasons through a Chain of Manipulations (CoM), and constructed Video CoM Instruct, an 18K instruction tuning dataset for multi-step manipulation reasoning. The model is further optimized via reinforcement learning with reasoning aware Group Relative Policy Optimization (GRPO), achieving strong results across nine video reasoning benchmarks.
Researchers at MBZUAI have introduced Video-R2, a reinforcement learning approach to improve the consistency and visual grounding of reasoning in multimodal language models. Video-R2 combines timestamp-aware supervised fine-tuning with Group Relative Policy Optimization (GRPO) guided by a Temporal Alignment Reward (TAR). The model demonstrates higher Think Answer Consistency (TAC), Video Attention Score (VAS), and accuracy across multiple benchmarks, showing improved temporal alignment and reasoning coherence for video understanding.
UAE-based sovereign AI chip company Mastiska has raised a $10 million seed round. The funding will be used to develop sovereign AI chips tailored to the specific needs of the UAE and wider region. Mastiska aims to address concerns around data privacy and security by providing locally-controlled AI infrastructure. Why it matters: This investment signals the UAE's commitment to building its own AI capabilities and reducing reliance on foreign technology.
The paper introduces FanarGuard, a bilingual moderation filter for Arabic and English language models that considers both safety and cultural alignment. A dataset of 468K prompt-response pairs was created and scored by LLM judges on harmlessness and cultural awareness to train the filter. The first benchmark targeting Arabic cultural contexts was developed to evaluate cultural alignment. Why it matters: FanarGuard advances context-sensitive AI safeguards by integrating cultural awareness into content moderation, addressing a critical gap in current alignment techniques.
The Saudi Data and Artificial Intelligence Authority (SDAIA) has signed seven Memoranda of Understanding (MoUs) with major US technology companies. These partnerships aim to advance AI innovation, develop digital infrastructure, and foster a data-driven economy in Saudi Arabia, aligning with the Kingdom's Vision 2030 goals. The agreements cover areas such as AI research, smart city development, and technology skills training. Why it matters: This signals Saudi Arabia's intent to accelerate its AI capabilities through strategic international collaborations, with a focus on practical applications and economic diversification.
This paper analyzes the energy consumption and carbon footprint of LLM inference in the UAE compared to Iceland, Germany, and the USA. The study uses DeepSeek Coder 1.3B and the HumanEval dataset to evaluate code generation. It provides a comparative analysis of geographical trade-offs for climate-aware AI deployment, specifically addressing the challenges and potential of datacenters in desert regions.
Luma AI, a startup developing multimodal AGI, has raised $900 million in a funding round led by HUMAIN, a Saudi Arabia-based investment firm. The company is focused on building general-purpose AI models that can understand and generate different types of data, including images, video, and 3D scenes. This funding round will allow Luma AI to scale its research and development efforts. Why it matters: This investment signals the growing interest and financial commitment from Saudi Arabian entities in advancing artificial general intelligence capabilities.
Researchers at MBZUAI have introduced EvoLMM, a self-evolving framework for large multimodal models that enhances reasoning capabilities without human-annotated data or reward distillation. EvoLMM uses two cooperative agents, a Proposer and a Solver, which generate image-grounded questions and solve them through internal consistency, using a continuous self-rewarding process. Evaluations using Qwen2.5-VL as the base model showed performance gains of up to 3% on multimodal math-reasoning benchmarks like ChartQA, MathVista, and MathVision using only raw training images.
California-based AI startup CoreWeave has raised $900 million in funding, backed by Saudi Arabia-affiliated investment firm Mubadala. CoreWeave specializes in providing cloud infrastructure for compute-intensive tasks like AI and machine learning. The investment signals growing Saudi interest in AI infrastructure and capabilities. Why it matters: This move could accelerate AI development in Saudi Arabia by providing access to specialized computing resources.
The US and Saudi Arabia have signed a Strategic Artificial Intelligence Partnership. The agreement aims to promote cooperation between the two countries in the field of AI across various sectors. It also focuses on fostering responsible AI development and deployment. Why it matters: This partnership signifies growing international collaboration with Saudi Arabia in AI, potentially accelerating the Kingdom's Vision 2030 goals for technological advancement.
This paper proposes a framework for understanding AI sovereignty as a balance between autonomy and interdependence, considering global data, supply chains, and standards. It introduces a planner's model with policy heuristics for equalizing marginal returns across sovereignty pillars and setting openness. The model is applied to India and the Middle East (Saudi Arabia and UAE), finding that managed interdependence, rather than isolation, is key for AI sovereignty.
Researchers from MBZUAI have developed MMRINet, a Mamba-based neural network for efficient brain tumor segmentation in MRI scans. The model uses Dual-Path Feature Refinement and Progressive Feature Aggregation to achieve high accuracy with only 2.5M parameters, making it suitable for low-resource clinical environments. MMRINet achieves a Dice score of 0.752 and HD95 of 12.23 on the BraTS-Lighthouse SSA 2025 benchmark.
KAUST startup Polymeron is converting date and poultry waste into biodegradable plastics, aligning with Saudi Vision 2030's goals for economic diversification and sustainability. The company aims to process 20,000 tons of waste annually, contributing to a circular economy and creating jobs in polymers, manufacturing, and sales. Polymeron is building its pilot plant at KAUST with support from the National Technology Development Program (NTDP). Why it matters: This initiative addresses plastic pollution and agricultural waste while creating a new industry in the Kingdom, tapping into a global market for biodegradable plastics valued at $13 billion in 2024.
KAUST has 16 researchers on the 2025 Clarivate Highly Cited Researchers list, representing 59% of the total from Saudi Arabia. The list recognizes researchers whose publications rank in the top 1% of citations between 2014 and 2024. Some notable research includes work on land degradation, the Red Sea's blue economy, and quantum random number generation. Why it matters: This recognition highlights KAUST's growing research influence and its ability to attract top international talent, contributing to Saudi Arabia's scientific advancement.
This paper introduces Cross-Document Topic-Aligned (CDTA) chunking to address knowledge fragmentation in Retrieval-Augmented Generation (RAG) systems. CDTA identifies topics across documents, maps segments to topics, and synthesizes them into unified chunks. Experiments on HotpotQA and UAE legal texts show that CDTA improves faithfulness and citation accuracy compared to existing chunking methods, especially for complex queries requiring multi-hop reasoning.
This study compares AI uptake in the UAE and Kuwait, analyzing how constitutional, collective-choice, and operational rules shape AI implementation and its impact on citizen centricity and public value creation. It finds that the UAE's concentrated authority and pro-innovation environment enable scaling AI initiatives, while Kuwait's dispersed governance and cautious approach limit progress despite similar resources. The research highlights the importance of vertical rule coherence over wealth in determining AI's public-value yield.
Microsoft has launched its 'Microsoft Elevate' program in the UAE, an initiative designed to bolster the nation's artificial intelligence ambitions. This program aims to support the development of AI capabilities and foster innovation within the Emirati ecosystem. It likely involves skill development, access to advanced AI tools and infrastructure, and strategic partnerships. Why it matters: This program signifies a major investment by a global technology leader in the UAE's AI future, reinforcing the country's strategic goal to become a leading hub for AI innovation in the Middle East.
A new method is proposed to reduce the verbosity of LLMs in step-by-step reasoning by retaining moderately easy problems during Reinforcement Learning with Verifiable Rewards (RLVR) training. This approach acts as an implicit length regularizer, preventing the model from excessively increasing output length on harder problems. Experiments using Qwen3-4B-Thinking-2507 show the model achieves baseline accuracy with nearly twice shorter solutions.