Silicon, not oil: Why the U.S. needs the Gulf for AI (restofworld.org)

The U.S. is strategically partnering with Gulf nations Qatar and the United Arab Emirates to bolster its position in the global artificial intelligence (AI) landscape. Both countries are poised to join the Pax Silica initiative, which aims to secure supply chains for AI and computer chips, while reducing American reliance on China for critical resources. Qatar is set to sign on January 12, followed by the UAE on January 15, joining a coalition that includes countries like Israel, Japan, and the UK. This collaboration is crucial as the Gulf states possess significant sovereign wealth and energy resources to fund large-scale AI projects, such as OpenAI's $500 billion Stargate data center initiative. Pax Silica represents a shift in U.S. policy, emphasizing "silicon statecraft" over traditional hydrocarbon-based strategies, and highlights the importance of compute power and mineral resources in the 21st century. With Gulf nations controlling over $1 trillion in sovereign funds and substantial energy production capabilities, they are strategically positioned to support the increasing demand for AI infrastructure. However, as these nations navigate their relationships with both the U.S. and China, the effectiveness of Pax Silica will depend on whether it can translate diplomatic agreements into meaningful investments in AI technology and infrastructure, potentially reshaping the competitive landscape of the AI race.