NVIDIA now sees the Middle East as its next “financial extraction” target as the firm sets up new large-scale AI data centers there.
NVIDIA’s Next AI Venture Might Be In The Middle East As The Firm Hopes To Bag In Huge Demand From The Region
When you look at Team Green’s global superiority, you will see that NVIDIA has managed to create a stronghold over the US and European markets; however, if you move towards the East, things will be a bit complicated. In China, NVIDIA was once all over the markets, establishing its monopoly by providing cutting-edge hardware to the likes of Tencent and Alibaba. However, with the influx of harsh US regulations, the firm found itself in a mud pit despite multiple attempts to find a solution.
Reuters now reports that NVIDIA is looking to experiment with the Middle East, collaborating with a regional tech giant to establish large data centers and provide clients access to the firm’s hardware. They have made a deal with the Qatari telecoms group Ooredoo, which has established itself in five different Middle Eastern companies: Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives. This deal will mark NVIDIA’s first venture in the Middle Eastern markets and can prove to be the next “gold rush” for the firm, given that it has managed to gain traction in the region.
By providing NVIDIA’s full-stack AI computing platform to customers, Ooredoo will help make it easier for their customers to deploy generative AI applications and services
– NVIDIA’s SvP of Telecom Ronnie Vasishta
Implementing NVIDIA’s full-stack platform for accelerated computing and generative AI, Ooredoo is equipped to be at the forefront of the AI revolution in MENA, driving digitalisation and innovation as the leading digital infrastructure provider in the region.
– Ooredoo’s CEO Aziz Aluthman Fakhroo
The specifics and the value of the deal haven’t been disclosed yet. However, the press release by Ooredoo states that the firm plans to deploy thousands of NVIDIA Tensor Core GPUs in data centers as customers will benefit from it through Ooredoo’s GPU-as-a-Service scheme, allowing clients access to cutting-edge AI ecosystem for large-scale developments and generative AI integrations. Given the deal’s details, it looks like NVIDIA has managed to bag in a huge client, and it probably might do so in the future as well.
In terms of US restrictions, well, the Biden government has halted the access of cutting-edge AI chips in the region, but relative to China, NVIDIA has the ease of business in the Middle East. Given that the US sees the Middle East as a key ally, it would be highly likely that the government would cool down the restrictions if Team Green manages to see massive interest.
Recently, we saw OpenAI’s Sam Altman paying a visit to the Middle East, where he was reportedly said to have secured a massive funding deal through the UAE-funded investment firm MGX. It’s a well-known fact about the Middle East that they are eager to “splurge” in finances into trending sectors of the world, and with AI, the region looks determined more than ever, allowing Team Green to test with the markets. This could result in NVIDIA isolating China, given that they receive the optimal response.