US and China compete for AI influence in the Gulf

By Splitfeed EditorialLast updated Oct 13, 2026, 19:30 UTC

Between October 11 and October 13, 2026, three publications framed US-China AI rivalry in the Gulf as an active and consequential contest. The Washington Post led on October 11 with a piece arguing that the United States, in pursuing AI dominance, relies in some unexpected way on China itself, suggesting the two powers are entangled rather than simply opposed. Asia Times followed on October 12, framing Gulf states as a live battleground where both countries are pursuing partnerships and infrastructure deals. The Hill closed the window on October 13 with the sharpest verdict, arguing plainly that the US is currently losing its AI race against China.

The Gulf matters in this contest for several concrete reasons. States in the region command sovereign wealth funds capable of financing large-scale AI infrastructure, they sit at logistics crossroads connecting Asia, Europe and Africa, and they have stated national ambitions to diversify economies around technology. Winning AI partnerships there, whether through data center investment, cloud agreements or model deployment deals, translates into long-term architectural influence over how those economies process information and make decisions. The genuine dispute is over how serious the US deficit actually is, and whether the interdependencies the Washington Post describes represent a strategic vulnerability or a more stable equilibrium than the losing narrative implies.

None of the three camps, Pro-AI, Anti-AI or Middle Ground, had published reactions to this story at the time of writing. Pro-AI voices would typically welcome Gulf investment in AI infrastructure as proof of the technology's global value and push back on any framing that restricts the flow of American AI products abroad. Anti-AI voices would likely raise concerns about exporting powerful systems to states with limited regulatory frameworks, and flag the risks of an influence competition that prioritizes deployment speed over safety standards. Middle Ground observers would probably call for clear government strategy on export controls and partnership terms, cautioning that neither unchecked competition nor blanket restriction serves long-term interests.

The clearest signals to watch in the coming months are any formal partnership announcements between Gulf sovereign funds and either American or Chinese AI developers, US Commerce Department decisions on chip export licensing to the region, and whether the Gulf states themselves begin articulating a preference for one technical ecosystem over another.