Nvidia announces regional launch in the Middle East as US restricts AI exports and fears China exploiting loophole

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Nvidia, an esteemed technology company, has recently announced a substantial agreement which will result in the implementation of its artificial intelligence technology in data centres situated throughout the Middle East. This development comes at a time when the United States is expressing apprehensions regarding the export of state-of-the-art chips to the region, amid concerns that Chinese enterprises may exploit this avenue to gain access to the latest AI technology.

The agreement entails Nvidia joining forces with Qatari telecommunications conglomerate Ooredoo to introduce its AI and graphics processing technology in data centres located in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives. This strategic partnership will facilitate Ooredoo’s clientele to directly utilize Nvidia’s cutting-edge technology, thereby providing them with a competitive advantage in the market. According to Ooredoo, this initiative will enable the company to better support its customers in deploying generative AI applications, consequently enhancing their overall operational efficiency.

Aziz Aluthman Fakhroo, the CEO of Ooredoo, has underscored the importance of this collaboration, asserting that it will grant their clients exclusive access to services that may not be accessible to their competitors for another 18 to 24 months. While the exact value of the deal remains undisclosed, it is evident that this marks a momentous milestone for both entities.

In light of export restrictions imposed by Washington on sophisticated chips, Ooredoo’s commitment to expanding its regional data centre capacity by up to an additional 25 megawatts signals a dedication to remaining at the forefront of technological advancements. This endeavour is part of a broader strategic vision that aims to nearly triple the data centre capacity by the conclusion of the decade, thereby establishing Ooredoo as a key player in the digital infrastructure landscape of the region.

Furthermore, Ooredoo’s decision to establish distinct entities for its data centres and undersea cables and fibre network illustrates a forward-thinking approach to infrastructure management. This initiative is expected to foster enhanced operational efficiency and drive innovation within the organization.

The partnership between Nvidia and Ooredoo represents a significant stride in the adoption of advanced AI technology in the Middle East. As the region continues to solidify itself as a centre for technological innovation, collaborations of this nature are poised to play a pivotal role in propelling the growth and development of various industry sectors.