Happy Wednesday Smashi Business Readers!☀️

Today's top stories spotlight significant shifts in global business: the US has imposed AI chip export restrictions on the UAE and 119 other counties, potentially impacting the region's AI ambitions. Meanwhile, Saudi Arabia’s PIF is in advanced talks to acquire a $1 billion stake in DAZN, marking a renewed push into European football broadcasting. Lastly, Qatar Airways has inked a record $97 million sponsorship deal for rugby’s Nations Championship, signaling the Gulf's growing influence in diverse sports.

Read on for more details.

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US Export Restrictions on AI Chips and GPUs Impact UAE and 119 Other Nations 🌐

📰 What is it about?

• The US introduced new export restrictions on AI chips and GPUs, dividing countries into three tiers of access:

  • Tier 1: Includes 18 countries like Japan, the UK, and South Korea, exempt from restrictions.

  • Tier 2: Encompasses 120 nations, including the UAE, subject to export caps (up to 1.7k GPUs exempt).

  • Tier 3: Blocks nations like China, Russia, Iran, and North Korea from accessing advanced AI technology.

• Cloud providers and companies outside the US can apply for Verified End User (VEU) statuses to gain limited access to advanced chips.

💡 Why it matters?

• Strategic AI Partnerships Under Strain:
  The UAE, a key partner in AI innovation, faces export caps despite its strong ties to US tech giants like Microsoft and investments in AI infrastructure.

• G42-Microsoft Partnership in the Spotlight:
  G42’s efforts to address US security concerns, including divesting from China and using Western-made hardware, have preserved its partnership with Microsoft, securing USD 1.5 billion in AI investments. However, this partnership remains contentious.

• Global AI Power Dynamics:
  The restrictions aim to curb China’s influence while protecting US dominance in AI. Countries in Tier 2, like the UAE, must navigate limited access to maintain competitiveness.

• Opportunities for Collaboration:
  Countries agreeing to align with US policies on export control, clean energy, and tech security could double chip caps, potentially fostering deeper collaborations with the US.

🔜 What’s next?

• Adjusting Strategies:
  The UAE and other Tier 2 nations will need to adapt AI development plans within the imposed caps, or explore securing VEU statuses to expand access.

• Stronger Bilateral Agreements:
  Signing agreements with the US could unlock increased GPU caps, ensuring a steady flow of advanced AI technology.

• Implications for G42:
  Continued scrutiny of G42’s operations could influence future US technology exports, making compliance with US security expectations crucial.

• Broader Industry Impact:
  This move may push Tier 2 nations to invest in domestic chip production or seek partnerships with alternative suppliers in Europe or Asia (excluding Tier 3 countries).

Markets

Saudi Arabia’s PIF in Talks to Acquire $1 Billion Stake in DAZN Group 🎥⚽

📰 What is it about?

• Saudi Arabia’s Public Investment Fund (PIF) is in advanced negotiations to acquire a 10% stake in London-based sports streaming service DAZN Group, valuing the company at $10–$12 billion.

  • DAZN holds broadcasting rights for top European football leagues, including Serie A, LaLiga, Bundesliga, and Ligue 1.

  • The potential deal aligns with Saudi Arabia’s push to expand its influence in global sports under Vision 2030, Crown Prince Mohammed bin Salman’s economic diversification strategy.

  • This follows DAZN’s recent $1 billion FIFA Club World Cup broadcasting deal, underscoring its growing role in global sports media.

💡 Why it matters?

• PIF’s Growing Sports Portfolio:

  • The investment aligns with PIF’s strategy to become a global sports powerhouse, building on its stakes in Newcastle United, Saudi Pro League teams, and hosting high-profile sports events.

  • A stake in DAZN would provide PIF strategic access to broadcasting rights across major European leagues, potentially benefiting Saudi football’s global aspirations.

• Boost for DAZN:

  • The capital injection would strengthen DAZN’s position in the competitive sports streaming market, helping it expand coverage and secure lucrative broadcasting deals.

• Broader Economic Vision:

  • The deal reinforces Saudi Arabia’s Vision 2030 by investing in sectors beyond oil, enhancing its global profile in entertainment, sports, and technology.

🔜 What’s next?

• Potential Deal Announcement:
  Talks are at an advanced stage, and a deal could be finalized soon, though terms may still change.

• Strategic Implications for Sports:

  • PIF could use its stake to negotiate broadcasting synergies for Saudi football leagues or high-profile events.

  • The investment may also fuel speculation about Saudi Arabia’s broader ambitions in European football club ownership or broadcasting dominance.

• DAZN’s Expansion:
  The investment could accelerate DAZN’s growth, enabling it to pursue more global rights deals and compete with tech giants like Amazon and Apple in sports streaming.

💭Quote of the day:

“The best time to plant a tree was 20 years ago. The second best time is now.” Chinese Proverb

Qatar Airways Secures $97M Deal to Sponsor World Rugby Nations Championship 🏉✈️

📰 What is it about?

• Qatar Airways has signed a record-breaking $97 million sponsorship deal with World Rugby for the Nations Championship, a premier international rugby tournament.

  • The agreement spans 2026 to 2034, covering four editions, making it the largest title sponsorship deal in rugby history.

  • Qatar will host the 2028 tournament and may stage additional editions in 2030 or 2032, subject to revenue targets.

  • The championship will feature matches between top northern and southern hemisphere teams, including Six Nations teams (France, Ireland, England, Scotland, Wales, and Italy) and southern powerhouses like New Zealand, Australia, South Africa, and Argentina.

💡 Why it matters?

• Historic Investment in Rugby:
  At over $24M per edition, Qatar Airways’ sponsorship eclipses other major rugby deals, such as Guinness’s $14.5M Six Nations sponsorship, setting a new benchmark for the sport.

• Expanding Qatar’s Sports Portfolio:

  • Following the successful hosting of the FIFA World Cup 2022, Qatar continues leveraging sports as a soft power tool to boost its global influence.

  • Hosting the 2028 Nations Championship solidifies Qatar’s position as a key player in international sports.

• Gulf’s Growing Sports Dominance:
  Qatar’s move aligns with the Gulf region's strategy of investing heavily in global sports.

  • Qatar Sports Investment owns PSG, and Qatar Airways sponsors its jerseys.

  • Regional rivals like Saudi Arabia are making waves with LIV Golf, boxing, and the 2034 World Cup, intensifying competition among Gulf nations.

• New Markets for Rugby:
  The deal introduces rugby to a new audience in the Middle East, helping World Rugby expand the sport's global footprint and diversify its fanbase.

🔜 What’s next?

• Event Execution:
  Qatar will gear up to host the 2028 Nations Championship, with potential bids for 2030 or 2032 if revenue goals are achieved.

• Impact on Global Rugby:

  • The sponsorship could drive increased investment in rugby infrastructure, marketing, and grassroots programs in emerging markets.

  • Other major corporations may follow suit, seeking partnerships with rugby to capitalize on its growing global appeal.

• Gulf Rivalry Intensifies:
  With Qatar, UAE, and Saudi Arabia competing for dominance in global sports, expect more high-profile sponsorships, hosting bids, and strategic investments in new sports markets.

🔍In other news…

1. GEMS Education is making headlines with the launch of a new $56,000-a-year school in Dubai for billionaire families.

2. A German court has ruled that Aldi’s “Alyan Dubai Handmade Chocolate” can’t be sold as “Dubai chocolate” unless it’s actually made in the UAE.

3. Riyadh-based Halo AI has successfully closed a $6M seed funding round led by Raed Ventures and Shorooq Partners, with backing from industry veterans.

4. The UAE has officially launched its first-ever Creators HQ at the 1 Billion Followers Summit in Dubai to attract 10,000 influencers.

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