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Saudis and South Koreans Make AI Strides 🔴

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What’s happening in AI policy right now

Saudi Arabia and South Korea double down on AI

Bold infrastructure moves

South Korea plans to construct what could become the world's largest AI data center, a 3-gigawatt facility that may generate $3.5 billion in annual revenue when completed in 2028. Not content with just physical infrastructure, South Korea is also acquiring 10,000 GPUs for its national AI computing center - a strategic advantage enabled by its exemption from U.S. export controls on AI chips.

Meanwhile, Saudi Arabia is pursuing multiple paths to AI leadership. DataVolt is developing a massive 55,000-square-meter AI-focused data center in Riyadh's First Technology Park. The Saudi state telecom company STC Group has partnered with SambaNova Systems to launch a sovereign AI cloud platform featuring what they claim is the world's largest open-source frontier model. Even Aramco's venture capital arm is getting in on the action, investing in UK-based AI infrastructure company Ori.

The skills challenge

But building data centers and acquiring GPUs is only part of the equation. At the recent IDC Middle East CIO Summit in Dubai, leaders highlighted a critical challenge: organizations are struggling to keep pace with AI advancements, facing a mismatch between technological capabilities and team adaptability. The skills gap threatens to become a major bottleneck in realizing the potential of these massive infrastructure investments.

Strategic implications

These developments reveal several key trends:

  1. The rise of sovereign AI capabilities: Countries are investing heavily in controlled AI infrastructure to maintain data sovereignty while advancing their technological capabilities.

  2. Infrastructure-first approach: Rather than waiting for talent and use cases to emerge organically, countries are proactively building massive AI computing capacity to attract companies and accelerate adoption.

  3. Public-private collaboration: Governments are partnering with private companies to fast-track AI development, as seen in Saudi Arabia's partnerships with SambaNova and DataVolt.

Looking ahead

The success of these ambitious projects will depend on more than just raw computing power. Countries must develop comprehensive strategies that include talent development, regulatory frameworks, and sustainable energy solutions for power-hungry AI infrastructure.

The real test will be whether these investments can attract and retain the necessary ecosystem of companies, researchers, and developers to create lasting value. While building physical infrastructure is straightforward, cultivating the human capital and innovative environment needed for AI leadership is a more nuanced challenge.

These massive investments in AI infrastructure may reshape the global technology landscape, creating new centers of AI innovation outside traditional tech hubs. For business leaders and policymakers worldwide, these developments offer both inspiration and caution - a reminder that successful AI adoption requires careful orchestration of physical infrastructure, human capital, and regulatory frameworks.

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