The US aims to cement its role as the leader in artificial intelligence with the formation of Pax Silica, a series of hand-picked partners from around the world.
The alliance includes the UAE, which is set to formally join this week, as well as Qatar.
A source familiar with the UAE's AI plans related to artificial intelligence told The National that the country will solidify its participation in the Pax Silica strategic initiative during US undersecretary of state for economic affairs Jacob Helberg's forthcoming visit to Abu Dhabi.
"Being part of a selective group positions countries such as the UAE and Qatar as credible global leaders in AI and advanced technology, reinforcing the region’s shift from being perceived primarily as hydrocarbons-based to being recognised as a hub for digital infrastructure, innovation and future-facing investment,” Sarah Greenstreet, a data protection lawyer at international law firm Addleshaw Goddard, told The National.
Economically, this reflects a shift towards technology supply chains as strategic assets, with participation limited to a small group of trusted partners, Ms Greenstreet said.
"Participation also provides a seat at the table in shaping emerging norms and co-operation models around AI and technology supply chains, rather than responding to frameworks developed elsewhere.”
What does Pax Silica mean?
The name Pax Silica is derived from the Latin pax, meaning, among other synonyms, peace and harmony. Among its notable uses is Pax Romana, describing the 200-year period of stability in the Roman Empire.
More closely related, however, is Pax Americana, or American Peace, which is used to describe the purported calm after the Second World War.
Silica, meanwhile is the compound that is refined into silicon, a component of AI computer chips.
What is Pax Silica's goal?
The US says Pax Silica aims to unite nations that are home to the world’s most advanced technology companies and help to "unleash the economic potential of the new AI age”.
These include ensuring "reliable” supply chains for economic security, developing trustworthy systems and driving economic value.
It also highlights "historic” opportunity and demand for energy, critical minerals, manufacturing, technological hardware, infrastructure and new markets not yet invented.
The Pax Silica connection can also grant easier access to minerals – rare earths, lithium and others – creating a wider supply chain ecosystem, said Vibhu Kapoor, a vice president at Texas-based software developer Epicor.
"AI on a mass scale or national scale will require heavy computing power … there's a big economic boost that will come to the region,” he told The National.
"If you look at it purely from supply chain perspective, this will help the region to avoid export restrictions, as members of Pax Silica are prioritised for advanced US technologies.”
Which countries are in the pact?
Eight countries joined the inaugural Pax Silica summit, including Australia, Japan, Israel, the Netherlands, Singapore, South Korea, the UK and the UAE, with Canada, the EU, the OECD and Taiwan as guests.
Among those, seven nations – Australia, Israel, Japan, Singapore, South Korea, the UK and Qatar – signed the pact, giving the Middle East two representatives in Pax Silica. It is unclear if the US has plans to invite others to the group.
Qatar’s participation proves that the Gulf is "ready to play a central role in this future … moving beyond being the energy supplier of the 20th century to becoming a fortress of computation and connectivity”, said Jacob Helberg, US undersecretary of state for economic affairs.
Mr Helberg is in the Middle East – stops include Israel, Qatar, the UAE and Saudi Arabia – until January 18 to attend bilateral meetings and events "to further the US’s economic relationships and advance partnerships in emerging technologies”. It is unclear if Riyadh will be invited to join the group.
A Pax Silica deal with the UAE is expected to be signed during his visit to Abu Dhabi this week.
The UAE joining Pax Silica underlines "a clear national narrative around normalised AI adoption across society”, Mazen Hayek, a Dubai-based media consultant, told The National.
“Smaller, agile nations like the UAE are proving that when governments actively encourage experimentation, AI moves from novelty to daily utility, far faster than in larger, more cautious markets,” he said.
From oil to semiconductors
Having increased ties with the US would not just create technological diplomacy, but it is also a pivot from oil to semiconductors, said Harjit Kang, head for the Middle East at Amsterdam-based software firm Mambu.
"As the largest market on the planet, there has to be some sort economic alignment … there has to be business,” he told The National.
"It's facilitating the transition from hydrocarbons and oil … it also adds that benefit where they're all working on the same economical framework. So it's empowering the Gulf in general.”
In recent years, the UAE has pushed to be an AI leader as it diversifies its economy away from hydrocarbons.
The country’s affinity for research into the technology has resulted in the establishment of start-ups, partnerships and investments from industry leaders including Microsoft, Nvidia and OpenAI.
In 2019, the UAE announced the establishment of a university dedicated to the tech, Mohamed bin Zayed University of Artificial Intelligence.
Last month, UAE Minister of State for AI, Digital Economy and Remote Work Applications Omar Al Olama said the country is planning to produce 60 trillion AI tokens through Stargate – the five-gigawatt data centre backed by some of the world biggest AI firms – as it bids to become the global centre for the technology.
And with data centres continuing to open, they need "massive” investments, said Gaby Diamant, chief executive of New York-based financial services firm BridgeWise.
"We will see growth in interactive hardware solutions … and resilience of the digital infrastructure,” he told The National.
