Devarya Ruparelia/Unsplash THE SCENE ABU DHABI — Courtney Powell, chief operating officer of venture capital firm 500 Global, recalled an idea that a fellow investor recently floated: What if the United Arab Emirates created a “special economic zone” in which copyright doesn’t exist? The lack of a copyright law would allow AI companies to train powerful models without worrying about lawsuits from book publishers, musicians and others who claim their work was ripped off by the technology. Powell, who was visiting from her home in Riyadh and has helped seed a growing ecosystem of startups there, wasn’t endorsing the idea. And there’s no indication that the leaders of the UAE would entertain the concept. The suggestion, though, highlights an increasingly common perception among some in the tech industry that the United States is coming down too hard on new developments like crypto and AI, and risks hurting innovation. Meanwhile, Powell said the Gulf region has become an increasingly attractive place for startup founders from all over the world, from South Korea to Latin America to Russia. There were 79 venture deals in Saudi Arabia and the UAE in 2015, according to PitchBook. That number reached 402 in 2022 before dropping slightly last year to 337. As the UAE and Saudi Arabia build out their data centers capable of training and running powerful AI models, the region could be seen as an attractive refuge for smaller startups that are overburdened by the uncertainty of regulation in places like the US and the EU, she said. To be sure, the UAE has its own regulations, but the centralized power of the Emirati leadership has made the rules more straightforward and easy to adjust when necessary. The country has also created several special economic zones, or “sandboxes,” where startups can experiment freely with new technologies, from autonomous vehicles to healthcare to crypto. Reed’s view on why the US can afford to be tougher on AI rules. → |
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