Happy Sunday everyone!

The Middle East’s tech scene is booming—anchored by bold bets, soaring profits, and unlikely alliances. OpenAI CEO Sam Altman hailed Sheikh Tahnoon bin Zayed as a “dear personal friend” and “true believer in AGI,” following the announcement of Stargate UAE, a massive AI data center launching in 2026. Meanwhile, Saudi BNPL giants Tabby and Tamara both turned profitable in Q1 2025, signaling fintech’s maturity. And Telegram, now based in Dubai, reported a $540M profit—its first ever—despite legal clouds over founder Pavel Durov.

But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.

Sam Altman Praises Sheikh Tahnoon After UAE Launches First International OpenAI Stargate

🔹 What Is It About

• Sam Altman, CEO of OpenAI, publicly praised Sheikh Tahnoon bin Zayed Al Nahyan, calling him a “true believer in AGI” and a “dear personal friend.”

• The remarks came as OpenAI announced its first international Stargate project in partnership with the UAE.

• The Stargate UAE data center, backed by G42 (chaired by Sheikh Tahnoon), will go live in 2026 with 100,000 Nvidia chips powering cutting-edge AI capabilities.

• The 1-gigawatt site is part of a larger 5-gigawatt, 10-square-mile complex being built in Abu Dhabi, in collaboration with OpenAI, Nvidia, Oracle, Cisco, and SoftBank.

🔹 Why It Matters

• The project follows a major policy shift by U.S. President Donald Trump, who lifted previous restrictions on exporting AI chips to the UAE.

• It marks a new phase of U.S.-UAE cooperation on AI infrastructure, a field increasingly shaped by global alliances and strategic investments.

• Sheikh Tahnoon’s support of OpenAI and AGI (artificial general intelligence) signals the UAE's high-level commitmentto becoming a global leader in artificial intelligence.

• Stargate UAE will give local government and commercial institutions access to the world’s most advanced AI models, enhancing national capabilities.

🔹 What’s Next

• The first 200 megawatts of capacity will be operational by 2026, with additional phases to follow.

• A U.S.-UAE working group will oversee the project to ensure it meets American security and governance standards.

• As OpenAI expands globally, the UAE could serve as a model for international AI infrastructure development, with Sheikh Tahnoon playing a central role in shaping its direction.

ODEUM – A Cutting-Edge Content Studio for All Your Production and Social Media Management Needs

📰 What is it about?

• Odeum, the content studio built for modern media consumption, partnering with brands to deliver tailored content services while also creating original productions under the Augustus Media network.

💡 Why Choose ODEUM?

At ODEUM, we provide end-to-end media solutions to elevate your brand across multiple platforms.

• Video: Distribution, post-production, production, live streaming, series and show creation, animation, branded content, AI-powered video creation, CGI video creation.

• Social Media: Account takeovers, strategic posts, tactical competitions.

• Copywriting: Branded content hubs, sponsored articles.

• Events: Media partnerships, co-branding, guest list curation, ticket commerce.

• Audio: Podcast production, hosting, voiceovers, audio ads.

• Online Advertising: Programmatic, display, paid social, affiliate marketing.

🔜What’s next?

• Have a project in mind? Let's make it happen!

• Book a studio or discuss your next big idea with us today.

Follow ODEUM on LinkedIn, Instagram and X.

Markets

Tabby And Tamara Break Profit Records As Saudi BNPL Market Surges

📰 What Is It About

• Saudi Arabia’s top BNPL (Buy Now, Pay Later) players, Tabby and Tamara, reported record-breaking profits in Q1 2025.

• Tabby posted SAR 319.4M in revenue (+38% YoY) and SAR 65.2M in net profit—a 553% increase, with 90% of income from merchant commissions.

• Tamara swung to profitability with SAR 25.8M in net income, reversing a SAR 62.1M loss a year ago. Revenue rose 40% YoY to SAR 215.9M.

❗ Why It Matters

• It’s a milestone moment for Saudi fintech: two homegrown BNPL giants are not just scaling—they’re profitable.

• Combined Q1 revenue reached SAR 535.4M, up nearly 39% YoY, reflecting strong market appetite and operational maturity.

• Daily BNPL transactions surged to 120K in 2024, with 43.3M annual transactions, a 178% jump.

• Merchant commissions have become the core revenue engine, showing increased retailer reliance on BNPL platforms to drive sales.

🔍 What’s Next

• With profitability now proven, both Tabby and Tamara are well-positioned for regional expansion and investor interest.

• The Saudi fintech sector could see more consolidation, IPOs, or cross-border BNPL integrations.

• As Vision 2030 pushes for fintech innovation, expect deeper regulation, broader adoption, and increased competitionin the BNPL space.

Telegram Hits $540M Profit Milestone Amid Legal Storm Over Pavel Durov

🔹 What Is It About

• Telegram turned its first annual profit in 2024, raking in $540 million from $1.4 billion in revenue—up 308% from the year before.

• Growth was fueled by a rise in premium users, advertising, and especially blockchain-related partnerships tied to its Toncoin cryptocurrency.

• The platform has over 1 billion monthly active users and just 60 core staff, with most moderation outsourced.

🔹 Why It Matters

• Telegram’s profits come despite legal troubles facing founder Pavel Durov, who is under investigation by French authorities for alleged inaction on child abuse and terrorism content.

• Durov claims his detainment was politically motivated, linked to his refusal to censor conservative voices in Romania.

• The controversy may hinder IPO plans, though Telegram says the case could be resolved this year.

🔹 What’s Next

• Telegram is launching a $1.5B bond offering with IPO-linked perks to repay debt and raise cash.

• The company aims for $2 billion in revenue and $720 million in profit in 2025.

• It’s also betting on AI integration, highlighting a new partnership with Elon Musk’s xAI to deploy the Grok chatbot on its platform.

🔍From Smashi Business’ Desk

• Pro-Palestinian staff say Microsoft has quietly filtered out key terms from internal emails.

• “How Do You Run Out of $400 Million?” Saudi entrepreneur questions QIA-backed Builder.ai's insolvency.

• Dubai founder Maryam AlMansoori opened up about the hidden emotional toll of leadership.

🔍In other news…

• Reuters Exclusive: Saudi Aramco considers asset sales to free up funds, sources say.

• Skills shortage a concern for Saudi’s big-ticket events like 2029 Asian Winter Games, Riyadh Expo 2030, and 2034 World Cup.

• Syria says foreign partners vital to modernise telecoms.

• Abu Dhabi’s IHC to double assets to $218bn by 2030, CEO says.

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