Chinese start-up DeepSeek sent shock waves through global markets in January, with its latest artificial intelligence breakthrough causing a nearly $600 billion rout in Nvidia’s market value. The company has since recouped some of those market losses.
The Chinese group claimed its generative AI chatbot rivals the best efforts of OpenAI, Anthropic and Meta – achieving comparable performance, but with a fraction of the computing power and fewer chips from Nvidia, significantly lowering the costs of development.
DeepSeek's rise is set to accelerate the drive to build national AI infrastructure and models – known as “sovereign AI” – given their perceived greater accessibility as a hedge against technological dependency on other countries.
Already, governments worldwide are pouring billions into supercomputers and proprietary AI models. Nvidia, which became the world’s most valuable company last year on the back of insatiable demand for its AI processors, already derives 10 per cent of its revenue from supplying chips to countries building their own infrastructure.
That figure is likely to climb sharply, as more nations treat AI as a strategic asset. The launch of the DeepSeek-R1 model and its ascent to the top of the Apple’s App Store underscores a broader decentralisation. Control is slipping away from Silicon Valley’s dominant players – notably OpenAI and Anthropic – as more nations and enterprises develop their own AI systems.
Underpinning this shift are the “open” models, not only DeepSeek’s latest release but also Meta’s Llama, which make their code and architecture publicly available, allowing anyone to modify, improve and fine-tune them to meet their specific needs.
Open models will be attractive to countries that fear dependency on foreign-controlled AI infrastructure could become a national security risk. This concern has prompted the US to tighten export controls on advanced computer chips. Similarly, China has introduced its own export restrictions to protect its technological assets.
The result of these measures is a world where nations are less willing to rely on foreign AI, fearing they could one day be cut off from critical technology at the flick of a switch. Enter sovereign AI.
A good example is Stargate, a high-profile AI infrastructure project valued at up to $500 billion, which aims to develop colossal data centres in the US, with companies including OpenAI, SoftBank and Oracle. Trump recently called the project a “declaration of confidence in America”.
China, meanwhile, is urging local companies to buy AI chips from national champion Huawei, to curb reliance on Nvidia, based in California, which remains constrained by US export controls.
What these geopolitical moves show is that the AI arms race is no longer just about who builds the best models – it is about who controls the infrastructure behind them.
But this battle to control the architecture underpinning AI is not confined to the US and China; it has become a multipolar fight. India is investing heavily in the “IndiaAI Mission” to develop large language models, semiconductor manufacturing and cloud solutions.
Japan, too, is ramping up its investment in domestic AI and supercomputing, to bolster national capabilities and reduce reliance on foreign technology.
On top of that, the UAE is establishing itself as a regional powerhouse in AI, with a sharp focus on developing Arabic-language models, such as Falcon. Saudi Arabia has pledged to spend $40 billion on AI models, reports suggest.
The EU has also taken steps to bolster its AI infrastructure with initiatives like LUMI, one of the continent’s most powerful supercomputers, based in Finland. But these efforts are still in their early stages. While the EU arguably leads in progressive AI legislation, its regulatory-heavy approach could prove more of a constraint than a catalyst for sovereign AI development.
Still, these global projects mark a big shift in the thinking about AI. For years, the assumption was that building a world-class generative AI model required vast sums of money, cutting-edge computing infrastructure, gargantuan data sets and deep talent pools.
DeepSeek and other open AI pioneers have upended that thinking. The Chinese company’s new model has demonstrated that high-performance AI can be built at a fraction of the price and time once thought necessary. And crucially, it’s open.
For smaller nations, this changes everything. Suddenly, the barriers to entry have been lowered. Governments that once saw AI self-sufficiency as a pipe dream can now consider the possibility of building their own national AI infrastructure. This is because these open models lower the cost, increase the flexibility and widen access to advanced AI technology.
And that has major implications for multinational companies doing business in these countries. As nations push for sovereign AI and assert tighter control over their digital infrastructure, companies will face new challenges in deploying AI across different regions.
Governments increasingly see AI as a strategic asset, leading to stricter regulations, data localisation requirements and trade restrictions that limit access to key technologies. This can be seen in measures like China’s restrictions on exporting advanced AI models, and America’s ban on selling high-end chips to Chinese firms.
Despite these regulatory hurdles, the AI industry is unlikely to become completely fragmented. Instead, a hybrid model could emerge, where certain elements − such as semiconductor manufacturing and cloud computing − remain part of a global supply chain, because no single country can fully control AI infrastructure.
The production of high-end chips relies on specialised expertise and supply chains spanning the US, Taiwan, South Korea and the Netherlands. Cloud services, dominated by US companies like Amazon, Microsoft and Google, require massive global data centres that few nations can replicate at scale.
While governments push for AI sovereignty, the sheer cost and technical barriers of developing entirely self-sufficient AI ecosystems ensure that some degree of interdependence will persist.
With that said, regional customisation is becoming more important, as governments demand AI systems that reflect local laws, cultural norms and economic policies. In India, AI models must accommodate local languages and data sovereignty laws, while Gulf nations are investing in Arabic-language AI to serve regional markets.
But there is still a fundamental change occurring: more players are entering the AI game, spurred on by DeepSeek’s breakthrough.
And as the lines between economic power, national security and technological supremacy continue to blur, one thing is clear: the fight for AI dominance is only just beginning.
Michael Wade is professor of Strategy and Digital, and the director of the TONOMUS Global Center for Digital and AI Transformation at IMD
UAE currency: the story behind the money in your pockets
RESULT
Wolves 1 (Traore 67')
Tottenham 2 (Moura 8', Vertonghen 90 1')
Man of the Match: Adama Traore (Wolves)
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
Super Rugby play-offs
Quarter-finals
- Hurricanes 35, ACT 16
- Crusaders 17, Highlanders 0
- Lions 23, Sharks 21
- Chiefs 17, Stormers 11
Semi-finals
Saturday, July 29
- Crusaders v Chiefs, 12.35pm (UAE)
- Lions v Hurricanes, 4.30pm
Haircare resolutions 2021
From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.
1. 'I will seek consultation from professionals'
You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.
2. 'I will tell my hairdresser when I’m not happy'
Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.
3. ‘I will treat my hair better out of the chair’
Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.
Zayed Sustainability Prize
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
More from Rashmee Roshan Lall
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
AUSTRALIA SQUADS
ODI squad: Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Josh Hazlewood, Marnus Labuschagne, Mitchell Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Twenty20 squad: Aaron Finch (captain), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitchell Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Managing the separation process
- Choose your nursery carefully in the first place
- Relax – and hopefully your child will follow suit
- Inform the staff in advance of your child’s likes and dislikes.
- If you need some extra time to talk to the teachers, make an appointment a few days in advance, rather than attempting to chat on your child’s first day
- The longer you stay, the more upset your child will become. As difficult as it is, walk away. Say a proper goodbye and reassure your child that you will be back
- Be patient. Your child might love it one day and hate it the next
- Stick at it. Don’t give up after the first day or week. It takes time for children to settle into a new routine.And, finally, don’t feel guilty.
