Happy Thursday everyone!

Y Combinator co-founder Paul Graham sparked debate with his post declaring that “a Palestinian child’s life is worth as much as an Israeli child’s life,” drawing rare western tech-world attention to Gaza. Meanwhile, new data shows Saudis and Emiratis use ChatGPT at rates far higher than the global average, cementing OpenAI’s dominance in the Middle East. And in Riyadh, hospitality startup Gathern raised SAR 270 million in Series B funding, led by PIF-owned Sanabil, as it eyes a future Tadawul listing.

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Y Combinator Co-Founder Paul Graham Weighs In On Gaza

🔹 What Is It About

Y Combinator co-founder Paul Graham — also known for Hacker News — posted on X: “A Palestinian child’s life is worth as much as an Israeli child's life,” amid the Gaza war. The remark, from a prominent Silicon Valley investor whose accelerator has backed many founders globally, quickly drew wide attention and debate.

🔹 Why It Matters

Influential tech figures have often avoided directly addressing alleged atrocities in Gaza. UN bodies and aid monitors have warned of a man-made famine risk and extensive destruction, while the ICJ ordered Israel to prevent acts of genocide and enable aid. Graham’s comment spotlights that silence.

🔹 What’s Next

Diplomatic momentum is shifting: France has said it will recognize Palestine at the UN in September 2025; Australia announced it will do so then; New Zealand’s cabinet will decide in September and is considering recognition. These moves could intensify pressure for a political track alongside humanitarian relief.

🔹 Y Combinator in MENA

The accelerator has been steadily deepening its footprint in the Middle East and North Africa, funding 72 startups from the region to date. Notable names include Baraka (UAE), Erad (Saudi Arabia), Ziina (UAE), and Thndr (Egypt), all of which have drawn investor attention and scaled significantly after YC support. The region’s inclusion reflects YC’s bet on MENA as a rising hub for fintech, investment platforms, and consumer innovation.

Markets

Saudis And Emiratis Use ChatGPT More Than Global Average, Cementing Middle East’s AI Loyalty

🔹 What Is It About

Saudi Arabia and the UAE are among the world’s most enthusiastic adopters of ChatGPT, with usage far exceeding global benchmarks. According to July 2025 data from Statcounter, quoted by AGBI, OpenAI’s chatbot commands a 91% market share in Saudi Arabia and Egypt, and 89% in the UAE — compared with 82% worldwide. Microsoft’s Copilot trails far behind at 5%, despite also running on OpenAI technology.

🔹 Why It Matters

OpenAI’s dominance highlights the Middle East’s central role in the global AI race. Regional partnerships, such as with Abu Dhabi’s G42 on the Stargate project, have embedded ChatGPT into government and enterprise ecosystems. Analysts note that while alternatives like Abu Dhabi’s open-source Falcon and Saudi startup Humain are emerging, ChatGPT’s global scale, brand recognition, and integration advantage still outweigh local cultural and linguistic strengths.

🔹 What’s Next

Experts suggest the balance could shift if regional models combine advanced capabilities with deeper Arabic fluency and competitive accessibility. UAE’s Falcon continues to attract global developers, while Humain prepares to debut its Arabic-focused chatbot. For now, however, usage trends show that Saudis and Emiratis are cementing OpenAI’s position as the Middle East’s undisputed AI champion.

Saudi Hospitality Startup Gathern Secures SAR 270 Million In Series B Funding, Eyes Tadawul Listing

🔹 What Is It About

Saudi-based alternative hospitality platform Gathern has closed a SAR 270 million ($72 million) Series B funding round led by Sanabil Investments, part of the Public Investment Fund (PIF). Strategic investors including Endeavor, Pinnacle, Nuwa Capital, and STV also participated. The round, completed at a valuation above SAR 1 billion, marks a milestone in Gathern’s journey toward a future listing on the Saudi Exchange (Tadawul).

🔹 Why It Matters

Since launching, Gathern has reshaped Saudi Arabia’s alternative hospitality sector, enabling thousands of local hosts to monetize their properties while offering visitors immersive cultural experiences. The company now serves more than 5 million users from 150 nationalities, has paid out SAR 2 billion to hosts, and holds 44% market share across the Kingdom—53% in Riyadh. Its 500% growth in the last two years underscores rising demand for localized travel experiences aligned with Saudi Vision 2030.

🔹 What’s Next

Backed by fresh capital, Gathern will expand both locally and regionally, with a focus on attracting international visitors, growing long-term stay options, and enhancing its AI-powered technology infrastructure. The company’s upcoming Tadawul listing will further position it as a key player in Saudi Arabia’s goal of becoming a global hub for tourism and hospitality.

👨‍💻From Smashi Business’ Desk

• Dreamers: From handling deliveries himself to shaping the MENA startup ecosystem: Meet Fadi Ghandour, founder of Aramex and Wamda Capital.

• Shark Tank is coming to Lebanon and LBCI has announced the investor panel for the show’s first season, featuring some of the country’s most influential business leaders.

• Emirati billionaire Khalaf Alhabtoor celebrated Lindt’s “Dubai Style Chocolate”

🔍In other news…

• Labubu maker Pop Mart seeks expansion to markets including Middle East amid record profit

• Parkin to deploy 200 ‘ultra-fast’ EV chargers in Dubai

• In Dubai, co-living tenants are now getting that 'minimum' space

• Projects worth $90bn underway, says Aramco chief

• PIF’s Humain seeks data centre chief for Saudi AI plan

• Ras Al Khaimah targets Monaco’s yachting elite with marina plan

• Saudi Arabia approves Dubai-based private jet operator VistaJet for domestic flights

🏦 Crypto Corner

• Michael Saylor — Executive Chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates — will make his first-ever appearance in the UAE at Bitcoin MENA in Abu Dhabi.

• Hut 8, part of a American BTC which is partially owned by Donald Trump Jr. and Eric Trump, Gets Approval to Operate in Dubai Financial Hub.

• Abu Dhabi Judicial Department now accept AE Coin.

We are launching a Smashi Crypto newsletter in September 2025! Subscribe to it here to get the weekly updates from the world of digital assets.

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