The Global AI Realignment: A Period of Dominion and Change
Within the unraveling sector of Artificial Intelligence, two shifts are currently redesigning the ecosystem: the emergence of an AI powerhouse in the Middle East, and the recalibration of digital protections in Europe.
While one part of the globe gets its hands on cutting-edge AI chips and builds a colossal data centre in the desert, another begins to rewrite its very laws of digital governance.
It was during my early morning readings that I found and took these two events into consideration, as it became clear that they represented a crucial alteration within this momentous period — our civilization's adaptation to AI. From the hunter-gatherer era to now, we have created and mastered a vast arsenal of tools used to make our lives easier and to make our society progress. It is through trial and error that we have done so since the beginnings of time.
With AI however, the stakes will be unimaginably higher. And as more powerful AI infrastructures become globalized, we will see governments and companies create and establish methods that will work, and that won't work for the overall benefit of society.
Going further, only more nations will grasp these great powers AI offers. More entities will change laws and regulations to adapt to the growing pressures in order to remain influential on the global stage — to reign supreme militarily and economically, sectors AI will have more of an influence over time.
Examining the variables, the world has already smashed 'go' on this race, the race that will truly redefine everything.
In this quick post we'll start on two distinct yet influential parts of the globe — capturing the details of Saudi Arabias partnership with xAI, its release of its own LLM, using the biggest Arabic dataset yet, and its burgeoning influence within the AI sphere. On the EU front, we'll explore the GDPR and the Digital Omnibus, and the changing stance on the famous and once esteemed EU regulations, on how companies can use data.
Rise of the East: Building More Than Models
In the heart of Saudi Arabias capital, Riyadh, an AI project is taking root. Humain, Saudi Arabia’s newly unveiled global AI company backed by the Kingdom's Public Investment Fund (PIF), is aiming to position itself as the 3rd global leader in AI, right behind China and the US.
It is backed by partnerships with tech titans like NVIDIA, AMD, and Qualcomm, and is setting the motion for a full-stack AI ecosystem. From a hyperscale data centre (massive, highly scalable facilities designed to support large-scale cloud services and big data workloads) to modern large language models like ALLaM, also known as HUMAIN Chat.
As mentioned earlier, this ALLaM 34B model was trained on one of the biggest Arabic datasets ever assembled, enabling it to understand a wide range of Arabic dialects.
With now a new region scaling AI applications at a national level, one will find a multitude of new opportunities — ranging from cross-border partnerships to access to unprecedented compute resources. Evidently however, it will also intensify global competition.
xAI’s Move
This chapter further unfolded when Elon Musk’s xAI linked partnerships with HUMAIN. A 500-megawatt AI data centre — one of the largest beyond U.S. borders — is now set to rise in Saudi Arabia, where the Grok model will be deployed with scale.
For those watching closely, this isn't just a partnership but a repositioning. Musk, who often frames AI in global terms, now anchors part of xAI’s future in a region willing to invest heavily, which by no means comes as a surprise acknowledging his many appearances in Saudi Arabia with Trump.
On another front, China also understands that compute scale is power. If Saudi Arabia partners with U.S. companies like xAI, NVIDIA-linked ventures, or future American compute infrastructure, China will see those partnerships as strengthening the U.S. sphere of influence. So we should be expecting to see attempts on their part to offer competitive AI partnerships to the Gulf.
Meanwhile In Brussels: The Changing Landscape
In the Northern hemisphere, another switch is underway — not of machines yet, but of information and data laws. The European Commission, previously idolized for its pioneering AI Act and privacy-forward stance, is now taking a vastly different approach regarding the AI act, the Data act, the GDPR, and other regulations.
The General Data Protection Regulation (GDPR)
The GDPR is a data privacy law that became effective on May 25, 2018, by the European Union. It gives individuals more control over their personal data.
The regulation applies when the data controller, the data processor, or the individual whose data is being collected is in the EU. It can also apply to organizations outside the EU if they collect or process personal data from people who are located inside the EU.
The Digital Omnibus
Published on November 19, the Digital Omnibus is a legislative proposal by the European Commission to simplify and modernize the European Union's existing digital rulebook. Its purpose is not simply to “update” rules, but to redo Europe’s stringent privacy tradition with the complex realities of modern AI, global competition, and the continent’s own desire to remain technologically relevant.
For years, the GDPR had been the gold standard of data protection, but it also created friction that slowed European AI deployment while the U.S., China, and the Gulf accelerated. The Digital Omnibus (still needs approval from European Parliament) acknowledges this shift. It loosens various constraints, albeit with controversies:
- Erosion of GDPR Protections
Critics argue the proposals dilute core GDPR principles — especially the redefinition of "personal data"—potentially undermining the privacy rights of EU citizens. This means some data that is currently protected might no longer be considered "personal data" for certain companies that lack the extra information needed to link it back to an individual person. If data is no longer considered "personal" for these entities, individuals lose the right to access, correct, or delete that data, making it harder to exercise their data rights in practice.
- Reduced Individual Control Over Data
By allowing “legitimate interest” as a basis for AI training and loosening consent requirements, individuals may lose meaningful control over how their data is used, especially in opaque AI systems. For users, this means data from your online activities or public posts could be incorporated into AI models without you explicitly agreeing to it beforehand, provided the company conducting the training makes a legitimate interest claim and offers a clear way for you to stop your data from being used. - Abusive Request Clause Lacks Definition
Under the current GDPR rules, individuals ("data subjects") have the right to request access to their personal data — commonly known as a Data Subject Access Request (DSAR). These requests are usually free and must be answered within a set time. The Digital Omnibus proposal would allow companies to refuse or charge for these access requests if they believe the request is "abusive" — but the term “abusive” isn’t clearly defined in the law. This vagueness could weaken a core GDPR principle: user control over personal data.
- Expansion of Data Use
Allowing tools and certain cookies raises concerns about silent profiling, ad targeting, algorithmic pricing and thus surveillance capitalism. Shoshana Zuboff has a great book on exactly that.
- Shift Toward Market-Led Governance
The package is seen by some as prioritizing tech industry competitiveness and appeasing large firms (especially U.S.-based) over citizen-centric regulation.
- Disparity in Global Privacy Standards
Weakening GDPR benchmarks could signal to other regions that strong privacy protections are negotiable, potentially reversing the EU's global leadership in digital rights.
- Risk of AI Model Bias and Misuse
Broadening data access for AI training without strong safeguards could enable model development on skewed, biased, or sensitive datasets without full transparency or oversight.
- Lack of Public Debate and Awareness
Some lawmakers and civil society groups say the changes are being pushed through with insufficient public scrutiny, transparency, and consultation. For example the consultation period for the proposed Digital Omnibus legislation, which included a "Call for Evidence," was open for an expedited window of approximately four weeks, from September 16, 2025, to October 14, 2025. Critics contend this shortened timeframe was quite insufficient for thorough public scrutiny of such complex and across the board amendments to foundational data protection laws.
- Disproportionate Advantage for Big Tech
Critics worry that easing data-use rules will benefit large platforms with the most access to infrastructure and data, widening the innovation gap at the expense of smaller players. A report by Social LobbyMap found that meetings between MEPs (Members of the European Parliament) and lobbyists regarding the Omnibus were vastly dominated by trade associations and large corporations.
The Other Side of the Coin
By others the EU’s Digital Omnibus package is being brought as a pragmatic evolution of Europe’s data governance framework — one that balances innovation with accountability. By easing certain constraints of the GDPR, it opens the door for more dynamic AI model training, easier data processing, and fewer compliance burdens, particularly for small and medium-sized enterprises. They see the proposed changes as clarifying outdated provisions, and introducing flexibility in how personal data is defined and processed — now aligning more closely with global digital norms.
Some are calling this a necessary adaptation — a practical change in the advent of accelerating AI innovation and competitive pressure from abroad. Others would call it a huge rollback, warning that loosening the guardrails could set a paradigm that compromises user rights and shifts power further toward large tech entities.
Let me know what you think.
Conclusion
What’s happening now is a global change of influence. The rise of sovereign AI infrastructure in regions like the Gulf and the regulatory realignment unfolding in Europe signal that the tech ecosystem is entering a critical stage of alteration.
Here is an interesting Ted Talk that may provide a clearer picture as to the kind of world approaching. I didn't agree with everything Bremmer said, but I did find points that I thought were fitting with the EU's changing stance regarding the growing power of tech companies.
I hope this post clarified many of the topics discussed, I will be adding to it as I come to learn more, and as further discussions between parties unravel.
I will be introducing many more posts over the coming weeks, lots of fascinating knowledge that serves great practical application, as well as older posts that need some finishing up, like the one on rewards and returns, the balance between exploration and exploitation, and the Markov series.
I may also take longer with some of the newer publications, as I am busy accelerating some processes within a rapidly developing startup. However do stay tuned for further updates/posts that will be of help in your very own journey.
Until next time.