West Asia's Entry Into The US-China Great AI Game
The race for AI supremacy began years ago; however, what was once seen as a US-China showdown has now shifted, and a massive change in demand has become widely visible in the market. The West Asian energy-rich countries had begun leveraging their financial muscle to invest in American and Chinese AI firms.
It’s high time to consider AI as something that shapes national security and geopolitical power rather than being reduced to a simple technological race. The recent development of the Chinese AI DeepSeek was indeed a ‘wake-up call’ to Washington AI firms as US President Donald Trump said. The revelation of the launch was a major heartbreak to the US shattering their AI dominance. China in building so had successfully closed the technology gap and even surpassed their counterpart by developing it using fewer computational resources.
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Knowing the impact of AI, apart from being a mere consumer, the wealthy Persian Gulf States, including Saudi Arabia and UAE, have turned to influential investors and thereby it will give them leverage in the future of global technology.
Foreseeing the future, Washington had decided to use AI as a pillar of national security rather than merely considering it to be a tool for economic growth. The US in 2018 had decided to integrate AI into military operations, enhancing battlefield intelligence, predictive maintenance and combat readiness.
Moreover, the US views AI as a major tool in the intensifying great-power competition, especially with Russia and China. After Trump came into power, Washington has now doubled down on these priorities. The recent measures including- nincluding Executive Order 14179 and Project Stargate signal the US motive in containing the power.
However, as a twist to the plot, the Chinese unveiling of DeepSeek shook the US tech industry. The app skyrocketed to the top of Apple’s US App Store and even managed to surpass ChatGPT and Gemini. This triggered a market termour as most of the global investors shifted their capital towards China’s AI sector. On the other hand, China is pushing itself to reduce reliance on Western semiconductor firms like TSMC and Samsung.
The sudden surge in demand is also believed to disrupt the global labour market, displacing jobs in data analysis, translation, and customer service. Moreover, China’s sudden surge in the field had attracted experts from Western markets which had resulted in a potential brain drain in the US and Europe.
Speaking of the Persian Gulf countries, they have the capacity to play a decisive role in tilting the balance of power between China and Russia. Saudi Arabia, UAE, and Qatar are now considered the “swing states” of AI geopolitics.
Energy is the most obvious element as generative AI data centers require a vast amount of power, and thus, energy-rich countries in West Asia are expected to benefit significantly. Saudi Arabia has made headlines by investing in Zhipu AI, one of China’s largest AI startups, and thereby becoming the first non-Chinese investor. This tactical move indicates the capability of West Asia’s ability to maintain influence and independence despite the growing pressure to ally with the US or China.
Apart from energy, West Asia also plays a major role due to its geographical significance. The region serves as a digital crossroads between Europe, Asia and Africa. As the majority of the web traffic passes through these continents, it becomes a prime hub for global AI deployment.
In conclusion, the AI battle is no longer a just two-player game. With the Persian Gulf state’s entry, they have positioned themselves as the kingmakers. And the AI in West Asia is now more than a technological rivalry; it is a contest for economic and geopolitical dominance.
