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- Sequoia Partner Draws Backlash; Universal Eyes Saudi Theme Park; UAE Emerges as US AI Hub
Sequoia Partner Draws Backlash; Universal Eyes Saudi Theme Park; UAE Emerges as US AI Hub
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Sunday, December 21, 2025
Happy Sunday everyone!
Three developments this week highlight how reputation risk, capital flows, and geopolitics are colliding across global tech and business. A partner at Sequoia Capital, Sean Maguire, is under fire after falsely linking a Palestinian student at Brown University to a December 13 shooting, claims later deleted after authorities identified a different suspect. Separately, Universal Studios has entered early planning for a potential theme park in Saudi Arabia, the Wall Street Journal reported, with a licensing structure involving parent Comcast and possible Saudi state-backed financing. Meanwhile, investor and writer Kevin Xu argues the UAE is emerging as a key hub for American AI, citing 1.5 million construction workers and the rapid buildout of Stargate UAE, a 1-gigawatt OpenAI-linked data centre that he says has progressed faster than any Stargate project outside Texas.
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Sequoia Partner Faces Backlash Over False Claims Linking Palestinian Student to US Shooting
What’s it About?
Sequoia Capital partner Sean Maguire is under fire after falsely linking a Palestinian student at Brown University to the December 13 campus shooting and the killing of an MIT professor. In deleted posts on X, Maguire said it was “very likely” the student was responsible and claimed Brown was “actively scrubbing his online presence.” Authorities later identified the suspect as Claudio Manuel Nieves Valente, ruling out any involvement by the student.
Why it Matters?
The incident has renewed scrutiny of Maguire’s conduct at Sequoia, which manages tens of billions of dollars globally. It follows a July controversy in which he labelled New York City mayor-elect Zohran Mamdani an “Islamist,” triggering an open letter calling for his removal signed by more than 1,000 founders and investors, many from the Middle East. The backlash raises reputational risk for Sequoia, particularly given its exposure across MENA through Peak XV Partners.
What’s Next?
Pressure is growing for Sequoia to clarify internal standards around partner conduct. Former COO Sumaiya Balbale, who resigned in October, later told the Financial Times the firm’s culture had become “increasingly Islamophobic.” Meanwhile, founders including Amjad Masad and Fadi Ghandour have publicly condemned Maguire’s comments, signalling the issue is unlikely to fade quietly.
Universal Studios Eyes Saudi Theme Park as Gulf Entertainment Race Heats Up
What’s it About?
Universal Studios has entered early planning stages for a potential theme park in Saudi Arabia, the Wall Street Journal reported, citing people familiar with the discussions. The project would be structured as a licensing deal with parent company Comcast and could be financed by a Saudi government-backed entity. No agreement has been finalised.
Why it Matters?
The move underscores Saudi Arabia’s push to scale its entertainment sector as part of broader economic diversification. It also highlights intensifying Gulf competition for global leisure brands, following Abu Dhabi’s success in attracting marquee attractions. For Comcast, the region offers capital, scale, and long-term growth beyond mature Western markets.
What’s Next?
Comcast CEO Brian Roberts recently visited Saudi Arabia and toured Qiddiya. The New York Post reported the trip included meetings with two PIF officials as Roberts explored a possible Warner Bros. Discovery bid. Analysts will watch whether talks progress into a formal agreement and how it stacks up against Disney’s first-ever Middle East theme park planned for Abu Dhabi.
Is the UAE Becoming the ‘51st State’ for American AI?
What’s it About?
In a post on his Interconnected Substack, Kevin Xu argues the UAE is emerging as a pivotal hub for American AI infrastructure following a recent visit to Dubai and Abu Dhabi. Xu highlights the country’s rapid buildout, noting 1.5 million construction workers in a population of 10 million, meaning 15% of residents wake up daily ‘building…something’. That momentum extends to AI, most notably Stargate UAE, a 1-gigawatt data centre developed with OpenAI as part of a broader 5-gigawatt US–UAE partnership. Xu writes it is “the one that has made the most progress, except for Abilene, Texas”.
Why it Matters?
Xu challenges the idea of the UAE as neutral in the global tech landscape. ‘Switzerland abstains. The UAE votes,’ he writes. With abundant energy, capital, and labour, the Emirates are positioning themselves as an extension of US AI capacity, at a time when data-centre construction in America faces rising cost, labour, and political constraints.
What’s Next?
The focus now shifts to execution. Analysts will be watching whether US hyperscalers redirect more AI workloads to the Gulf and how quickly projects like Stargate UAE scale. For Xu, the signal isn’t only megaprojects. At a Dubai restaurant, he found five types of chopsticks on one table, something he wrote he had “never seen anywhere else”, reflecting how scale and inclusivity coexist in the UAE’s growth model.
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