Middle East Poised for AI-Driven Collaboration as Abraham Accords Expand

The future of the Abraham Accords may be shaped not by traditional political pathways but by a burgeoning collaboration in artificial intelligence (AI) across the Middle East. Industry experts Ofer Shacham, co-founder and CEO of Majestic Labs, and Judah Taub, managing partner at Hetz Ventures, emphasize that the region’s unique combination of energy resources and technological capabilities positions it to lead the next AI revolution.

Speaking at a recent dinner in Jerusalem, Shacham noted, “The whole Gulf region has energy. Israel has the technology and the talent … Everybody basically wants to work together to build the next AI revolution in this region. It’s going to happen eventually.” He underscored that different countries bring complementary strengths, enabling them to tackle larger problems collectively than they could individually.

Shacham also pointed out that AI adoption in the Middle East remains at an early stage compared to other global regions, presenting significant potential for rapid growth. This growth, he explained, hinges on access to both advanced technology and reliable power sources.

Judah Taub elaborated on the critical role of electricity in AI development, stating, “When you hear of AWS [Amazon Web Services], Google, Anthropic, and OpenAI, they all are now talking about how many gigawatts of AI they’re going to create, because they’re slowly realizing that the number one issue they’re all going to run into is that there simply isn’t enough electricity.”

To contextualize, Taub compared power consumption figures: CERN’s experiments peak at about 0.2 to 0.3 gigawatts, OpenAI’s planned data centers require approximately 1 gigawatt continuously, and Starlink projects a demand of 10 gigawatts. Elon Musk has even suggested figures as high as 100 gigawatts, with one gigawatt roughly equating to the power usage of one million homes.

Israel’s total electricity production is around 27 gigawatts, according to Taub. He anticipates that once regional conflicts subside and cooperation with Gulf countries such as Saudi Arabia intensifies, “one of the first things that moves forward is a regional collaboration for AI.” Saudi Arabia’s abundant energy resources paired with Israel’s technological expertise create a natural synergy for such collaboration.

Beyond energy and technology, the AI sector faces challenges related to hardware supply and regulatory controls. Semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company and Nvidia play pivotal roles in providing the necessary components. Meanwhile, emerging regulations may restrict the sale of advanced AI technologies to certain buyers, reflecting concerns about the strategic nature of AI infrastructure.

Taub remarked, “Governments have realized that these are, to an extent, the nuclear facilities of the future, and by selling some of these, you’re helping people that you might not want to leapfrog or do things that they otherwise can’t.”

Majestic Labs, founded shortly after the October 7, 2023, massacre, is innovating server architecture with the goal of drastically reducing the physical footprint of AI infrastructure. Shacham explained, “We started Majestic Labs to build AI infrastructure for the world with that notion and vision of ubiquitous AI; we want to bring it to everyone.”

Currently, AI infrastructure often requires about 40 refrigerator-sized racks of Nvidia hardware. Majestic Labs aims to condense this into a system closer to the size of a microwave oven. Shacham identified memory as a significant bottleneck in the industry, noting that only a few companies manufacture it. The competition for memory supply and related technologies is intensifying globally, a core rationale behind Majestic Labs’ mission.

As the Middle East looks beyond conflict toward economic and technological integration, AI stands out as a promising avenue for regional cooperation. The convergence of energy availability, technological innovation, and strategic partnerships could position the Abraham Accords as a catalyst for the region’s AI-driven future.