Legal Framework

Saudi Arabia is pursuing “data embassies”—foreign‑located data centers that remain under Saudi law—to secure AI compute capacity while retaining jurisdiction, following Estonia’s 2017 model. The plan, outlined in a draft Global AI Hub Law, aims to make the kingdom a cost‑effective, data‑export hub despite water‑scarcity and reliance on fossil‑fuel electricity, raising ESG concerns. Bilateral treaties will be needed, but no universal legal framework exists. Experts warn that legal, technical and geopolitical challenges could hinder the model’s mainstream adoption.

Anthropic has reportedly agreed to a $1.5 billion settlement in a copyright lawsuit brought by authors who alleged their works were used without permission to train AI models. The proposed settlement includes payments of $3,000 per book plus interest and a commitment to destroy datasets containing the allegedly infringing material. This landmark case addresses copyright law in AI development. The plaintiffs’ attorney emphasized the importance of respecting copyright laws for AI training. The lawsuit, filed last year, claimed “large-scale copyright infringement.” Following a substantial funding round, experts believe this settlement could clarify legal frameworks around AI training data.