AI Dispatch | AI's Transformation Phase

News

1. Microsoft and G42's Inception42 Join Forces on Enterprise Agentic AI

2. UK Foreign Secretary Warns World Cannot Wait for 'AI Hiroshima' Before Regulating AI

3. UAE Banks Defy Rate Cuts With Double-Digit Profit Growth

4. Sam Altman Floats Plan to Give US Govt 5% OpenAI Stake: Report

5. UAE Unveils National Framework for Children's Content Across Media

6. Palantir CEO Slams OpenAI, Anthropic Over AI Token Economy

This week saw governments getting more involved, threats getting more urgent, and the Gulf pulling ahead. Vulnerabilities were found in classified systems, intelligence alliances made concerns public, and governments raced to embed AI into their critical infrastructure.

1. Nvidia’s New Cooling System Cuts Data Center Water Use to Near Zero

Nvidia has unveiled a warm-water cooling architecture that could eliminate nearly all water consumption in data centers—directly targeting one of AI’s most scrutinized environmental costs. Instead of relying on conventional evaporative cooling systems, its design circulates coolant through servers in a closed loop, with water added once and reused throughout the facility’s lifetime. 

“With dry-cooler-based designs, it’s a closed-loop system with no evaporative water cooling—outside of maybe 1% of the year when we might need chillers in some climates,” said Ali Heydari, director of data center cooling and infrastructure, Nvidia.

Read more: Nvidia’s New Cooling System Cuts Data Center Water Use to Near Zero—But Not AI’s

2. Anthropic Finds Critical Vulnerabilities in Classified US Systems

Anthropic’s advanced AI model, Mythos, has identified vulnerabilities in highly sensitive U.S. government computer systems during a recent testing exercise conducted with intelligence agencies. 

The exercise, carried out under Project Glasswing—a restricted government initiative designed to identify and remediate critical software weaknesses before they can be exploited by adversaries—offers a glimpse into how frontier AI models are increasingly being deployed as cybersecurity tools.

Read more: Anthropic’s Mythos Finds Critical Flaws in Classified US Systems: Report

3. Five Eyes Warns of Cyberattacks Outpacing Defenses 

The intelligence alliance of the United States, United Kingdom, Canada, Australia, and New Zealand, commonly known as Five Eyes, has raised concerns over rapidly advancing artificial intelligence, which can supercharge offensive hacking capabilities.

In a three-page statement, the alliance called for urgent action to confront the threat. “Frontier AI models are anticipated to exceed current industry expectations, fundamentally transforming both offensive and defensive cyber capabilities,” they said. “The timeline is not years, it is months.”

Read more: “The Timeline Is Months, Not Years”: Five Eyes Warns of AI-Powered Cyberattacks

4. WhatsApp Finds Its Global Head in CRED’s Kunal Shah

Indian fintech giant CRED has raised about $900 million in a Series H round led by Meta. Under the terms of the investment, Meta will become a minority investor in CRED, while founder Kunal Shah will step down from his operating role as chief executive and join Meta’s global leadership team and lead WhatsApp, succeeding Will Cathcart.

Read more: Meta Bets on CRED as Kunal Shah Takes WhatsApp Role

5. UAE Introduces AI-Generated Spokesperson for International Outreach

The UAE has introduced an AI-generated spokesperson named Zayed, expanding the government’s efforts to embed artificial intelligence into public administration and international engagement.

Developed for the International Affairs Office at the UAE Presidential Court, Zayed will serve as a digital representative communicating the office’s priorities, initiatives, and policy positions to audiences in the UAE and abroad.

Read more: UAE Introduces AI-Generated Spokesperson for International Outreach

6. Saudi Arabia Opens Path to Data Monetization, Bars Raw Data Sales

The Saudi Data and Artificial Intelligence Authority (SDAIA) has approved a new Data Monetization Policy that defines how government-generated data can create economic value while remaining under strict public oversight.

The policy establishes government data as a strategic national asset, signaling Riyadh’s intention to treat data not merely as an administrative byproduct but as critical infrastructure for economic diversification. 

Read more: Saudi Arabia Opens Path to Data Monetization, Bars Raw Data Sales

7. 38% of UAE and Saudi Firms Have Agentic AI in Production, Highest Globally

According to Confluent’s 2026 Data Streaming Report, 38% of organizations in the UAE and Saudi Arabia are already running agentic AI in production. With this figure, the two emerge as one of the leading markets globally in deploying agentic AI solutions.

The report, drawn from feedback from more than 4,000 global IT leaders, shows that Gulf organizations have managed to maintain this momentum.

Read more: 38% of UAE and Saudi Firms Have Agentic AI in Production, Highest Globally

8. 91% of Saudi Firms See AI Pay Off: Survey

Saudi Arabian organizations are seeing measurable returns on AI investments, with 91% of organizations reporting that their AI initiatives are meeting or exceeding expectations, according to a new survey commissioned by SAP and conducted by market research firm YouGov. 

The survey of 260 chief IT decision-makers across multiple sectors in the Kingdom also found that 59% of organizations now prioritize AI investment strategically and enterprise-wide, while 54% are upskilling or reskilling staff at scale.