AI Dispatch | AI’s Power Players Double Down

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1. AI Dispatch | AI’s Power Players Double Down

2. Anthropic Joins Frontier, Signaling AI's Entry Into Carbon Removal Markets

3. 42% of Middle East Employers Are Drowning in AI-Generated Job Applications, Survey Reveals

4. SpaceX to Buy Cursor Parent Anysphere in $60 Billion Stock Deal

5. Nvidia's Jensen Huang Wants a New Social Contract for AI

6. OpenAI's Cash Burn and Shrinking Market Share Reflect a Maturing AI Industry

AI made critical strides this week as a major AI company’s spending numbers raised eyebrows ahead of its IPO, a government order pulled a leading model offline, a court filing revealed a chatbot’s use in military operations, Gulf boardrooms prioritized AI oversight, and governments from the UAE to Egypt poured billions into AI infrastructure.

SpaceX Bets Big on AI with Anysphere Buyout

SpaceX has announced the acquisition of Anysphere, the company behind the AI coding platform Cursor, in an all-stock deal valued at $60 billion, moving to strengthen its artificial intelligence business days after its market debut.

The transaction is expected to close in the third quarter, subject to regulatory approvals. The acquisition would give SpaceX’s AI business, built around xAI, a stronger position in AI coding, one of the first enterprise AI markets to generate substantial revenue.

Read more: SpaceX to Buy Cursor Parent Anysphere in $60 Billion Stock Deal

OpenAI’s Costs Soar as IPO Looms

The ChatGPT parent company burned through $3.7 billion in the first quarter of 2026—more than half of its $5.7 billion in revenue during the same period—according to documents shared with shareholders.

The disclosure comes as OpenAI prepares for its next phase of growth. Earlier this month, the company confidentially filed for a U.S. initial public offering that could take place as early as September and potentially value the firm at up to $1 trillion.

​Read more: OpenAI’s Cash Burn and Shrinking Market Share Reflect a Maturing AI Industry

Anthropic Suspends Frontier AI Models After US Order

Anthropic has disabled access to its advanced AI models, Fable 5 and Mythos 5, after a US government directive raised concerns about potential security vulnerabilities. The move has sparked debate over AI export controls, nationality-based access restrictions, and the growing influence of national security on AI policy.

Industry experts warn that businesses relying on foreign AI providers face new risks from sudden service disruptions. The episode has also strengthened calls for sovereign AI strategies and greater diversification of AI infrastructure worldwide.

Read more: US Curbs on Anthropic’s AI Tools Raise Fears of Fragmented Access

Elon Musk’s Grok AI Used in US Military Operations

A US government court filing has revealed that Elon Musk’s AI chatbot Grok is being used in Project Maven, the Pentagon’s AI-assisted military targeting program. The disclosure came as federal officials defended xAI’s data center against an environmental lawsuit.

The project’s Maven Smart Systems “enabled US forces to deploy over 2,000 munitions to 2,000 distinct targets within 96 hours during Operation Epic Fury,” Pentagon AI chief Cameron Stanley said in a statement.

Read more: Elon Musk’s AI tool Grok was used in strikes against Iran: US govt

Middle East Boards Among World’s Most AI-Focused: Study

The latest Board Value Index from Board Intelligence found that boards in the Gulf region are more confident compared to their global peers in their ability to create value and are taking a notably proactive approach to AI oversight.

Forty-two percent of Middle East directors described their board as an essential driver of value creation—the highest share among all regions surveyed. The research also found that 86% believe their boards actively enable innovation, while 58% are already reviewing which decisions should remain human-led and which could increasingly be delegated to AI.

Read more: Middle East Boards Among World’s Most AI-Focused: Study

UAE Unifies AI, Data, and Cybersecurity Under New Cabinet-Level Authority

The UAE is taking a significant step toward consolidating its AI ambitions by creating the Artificial Intelligence and Data Authority, a new federal body tasked with overseeing AI, data governance, digital services, and cybersecurity.

It consolidates responsibilities previously distributed across the Office of Artificial Intelligence, Digital Economy and Remote Work Applications, the Digital Government Sector at the Telecommunications and Digital Government Regulatory Authority, and the UAE Data Office.

Read more: UAE Unifies AI, Data, and Cybersecurity Under New Cabinet-Level Authority

Saudi Arabia Bets Big on Digital Government Services; Pours $8.53B in 2025

Over the past decade, the Middle East has invested heavily in developing its digital government services and offerings. Among all, Saudi Arabia invested over SR31.9 billion ($8.5 billion) in communications and information technology services in 2025 to advance digital government services.

​The country’s government contracts totaled around SR31.7 billion ($8.45 billion) across 6,145 agreements in the last year. The figures result from the completion of several major digital infrastructure projects, which have accounted for a significant share of technology investments in recent years.

Read more: Saudi Arabia Bets Big on Digital Government Services; Pours $8.53B in 2025

Egypt Signs $400M Data Center Deal With Hassan Allam

Egypt’s National Telecommunications Regulatory Authority (NTRA) has signed a licensing agreement with Hassan Allam Digital Infrastructure to develop and operate a $400 million data center.

The project is built on a partnership between Hassan Allam and venture capital firm A15. The deal aligns with Egypt’s national strategy to position the country as a regional hub for data exchange and digital services, and supports its goal of generating $42.7 billion in AI-related economic value by 2030.