US Middle East AI Deals + Fed Cuts

TECH IN THE NEWS

Easing Cycle Begins - The Federal Reserve cut the benchmark interest rate by 50 basis points on Wednesday. However, recession fears remain over the recently inverted yield curve, slowing economic growth and a weakening labor market.

Supply Chain Warfare - Israel’s pager attacks in Lebanon via Taiwanese tech ignite fears of global supply chain warfare, prompts caution in China about foreign tech.

Protecting US Infrastructure - Craig Newmark, the founder of Craigslist, has pledged $100M to enhance US cybersecurity against foreign government hacking.

AI Global Governance - The UN’s high-level advisory board on AI report reveals challenges of governing AI and need to ensure it is free from vested interests. 

Digital IDs - California announced that residents can now use a driver’s license or state ID via Apple Wallet (or Google Wallet) at select TSA checkpoints & businesses.

COMPANIES TO WATCH

Lionsgate AI - The pioneering film company partnered with AI video generation company Runway to create a custom AI model trained on Lionsgate’s catalogue.

Earth-Moon Comms - Houston satellite startup Intuitive Machines landed a $4.8b NASA contract to build an Earth-moon communications infrastructure.

THE HOTTEST THING IN TECH
US x Middle East AI Deals Reshape Tech Landscape

This week’s flurry of high-profile AI deals between US tech giants, startups, and Middle Eastern companies is signaling a significant shift in the global AI landscape. These deals featuring BlackRock, Microsoft, Nvidia, Groq, MGX and G42 have far-reaching implications for investors and startups worldwide.

Blackrock x Microsoft x MGX

In a groundbreaking move, BlackRock is spearheading a $100 billion “AI infrastructure fund”, backed by tech giants Microsoft and Abu Dhabi VC fund MGX with $30b to start. It will invest in data centers and related energy infrastructure with Nividia advising on infrastructure design and implementation. MGX was created this year and backed by Abu Dhabi’s sovereign wealth fund Mubadala to advance the country’s progress in AI. It has been in talks to invest in OpenAI’s upcoming fundraise.

Microsoft x G42 Strategic Partnership

Microsoft’s involvement is no isolated event. The tech giant is building on its existing $1.5b partnership with UAE-based AI company G42. The new project will jointly fund a center to identify and develop AI best practices in the Mideast and the Global South, including Africa. The strategic move opens up new markets in fast developing regions and fosters technological exchange between the US and the Middle East.

Groq x Saudi Aramco Chip Innovations

Innovative US chip startup Groq landed another groundbreaking agreement with Saudi Aramco, the world's largest oil company. Known for its pioneering “Language Processing Unit’ fast AI chips, Groq will now be able to scale its technology by tapping into the resources of one of the world's wealthiest companies. It will also provide Aramco with cutting-edge tech to enhance its operations and support the kingdom's ambitious plans to diversify its economy and establish itself as a major AI player. .

Implications for the Global AI Ecosystem

The AI revolution requires massive compute power, and energy resources. The oil-rich Gulf states are keen to invest heavily in both AI and renewables energy to diversify. These initiatives herald closer AI collaboration between US finance and tech leaders and Middle Eastern investors. The deals all share several key themes:

1. A growing diversification and decentralization of AI Hubs and development, with the Middle East emerging as a significant player in the industry.

2. The Middle East is an increasingly attractive alternative for US companies seeking new partners for collaboration and investment beyond China.

3. The combination of US tech expertise with the financial and energy resources and strategic ambitions of Middle Eastern entities.

4. Access for US tech companies to new markets in sectors where Middle Eastern countries have traditionally excelled, such as energy and finance.

What This Means for Stakeholders

• Investors: Keep a close eye on companies involved in these cross-regional partnerships for unique growth opportunities as they tap into new markets.

• VCs: Consider expanding your network to include Middle Eastern tech ecosystems as an influx of capital and tech drives a new wave of startups.

• Startup Founders: Explore potential collaborations or funding opportunities with Middle Eastern entities to access capital, new markets and use cases.

• Technologists: Prepare for a more globally distributed AI landscape by upskilling in cross-cultural awareness and regional market intelligence.

Geopolitical Context.

As US, China AI tensions escalate, these partnerships are a move to strengthen ties with Middle Eastern tech ecosystems to reduce reliance on Chinese markets and capital. The US is also eager to counter China's growing influence in AI and tech across the global south. Also, amid escalating conflict in the Middle East, these AI partnerships likely serve as a form of tech diplomacy, potentially offering the US alternative channels for regional influence and engagement. However, for US-based investors, VCs, and tech professionals, these partnerships potentially open up exciting new opportunities and markets in an increasingly globalized AI ecosystem.

FOR INVESTORS
Open Deals

Request an intro to founders - invest@thetech.buzz

1. 🔥⏱️ Robotics for Agricultural Efficiency - Pittsburgh - Built & deployed robotic hardware for the largest U.S. tree nurseries, reducing costs and increasing efficiency by 50x. Hardware and AI data layer. Beginning to scale globally. Post-revenue, at capacity. (Seed+)
   

2. 🔥⏱️ Quant Trading Software Company - New Jersey - Large-scale automated day-trading algorithm designed for volatile U.S. equity markets. Profitable through extensive backtesting and live simulation. Seeking equity investment for software company.

3. Cricket for the Modern World - India - Physical and virtual ecosystem fostering cricket experiences for enthusiasts and upcoming pros. Data-driven, locally proven, globally scaling. (Seed)

🔥 — hot deal!
⏱️ — leaving soon.

FOR EMPLOYERS
Job Candidates

Request an intro to candidates - jobs@thetech.buzz.

1. Struck Capital Venture Associate, ex-West2East (Russell Wilson) Director of Special Projects, ex-Phoenix Holdings Investment Associate. Harvard BA. Vietnamese pro basketball player.

2. Lockheed Martin Software Engineer, ex-Rutgers Junior Full Stack Developer. Secret clearance. Expertise in C++, PHP, SQL. Rutgers BA in Computer Science.

TRENDING TOOLS AND BUZZY TECH
Tools

XR - 1. Snap AI-powered “Spectacles“ AR Glasses and Snap OS. | 2. HTC Vive Focus Vision $999 high-end VR/XR headset.

Andrej Karpathy - Moshi an alternative conversational AI audio model to ChatGPT.

Runway - API integrates Gen-3 video-gen model into 3rd-party platforms.

Mistral - Free API tier, reduced costs, improved small model, adds vision model.

Nvidia - AI Aerial platform offers wireless AI on a unified infrastructure for telcos.

Tech

Brain-Sync - 1. Neuralink 'Blindsight' implant gets FDA breakthrough device tag. | 2. Neuralink rival Synchron enables users to connect by brain to Alexa.

Quantum Energy - Quantum computer extracts energy from empty space.

Hospital Early Warning - AI system cut unexpected deaths by 26%, study finds.

Beijing - City allows robotic chefs to cook in the food service industry.

Nuclear Energy 1. Westinghouse ‘‘eVinci’’ nuclear microreactor to test in 2026. | 2. Helical Fusion - Japan launches world's first steady-state nuclear fusion reactor.

🚨TECH BUZZ ANNOUNCEMENT:

We’ve made some changes — Our Closed Deals, Companies to Watch, and Funding Buzz sections will now arrive every Monday AM wrapping up the week’s top deals.

Please get in touch with feedback on this change and any other suggestions as to what you would like us to feature more of.