Nvidia set to enter Middle East market as US restricts AI exports and concerns rise over Chinese avoidance of ban

Nvidia set to enter Middle East market as US restricts AI exports and concerns rise over Chinese avoidance of ban



Nvidia has reached a significant agreement with Qatari telecoms group Ooredoo to implement its artificial intelligence technology in data centers across five Middle Eastern countries. This partnership allows Ooredoo to offer direct access to Nvidia’s graphics processing and AI technology to customers in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives.

The deal signifies Nvidia’s first major launch in the region, as concerns about Chinese companies utilizing Middle Eastern nations as a gateway to cutting-edge AI technology have led to restrictions on the export of sophisticated American chips by Washington. By leveraging Nvidia’s technology, Ooredoo aims to enable its customers to deploy advanced generative AI applications, giving them a competitive edge in the market.

The collaboration between the two companies is anticipated to provide unique services to Ooredoo’s business-to-business clients that may not be available to their competitors for at least 18 to 24 months. Although the specific details and financial terms of the deal were not disclosed, both parties are confident in the value and impact of this partnership.

In alignment with this initiative, Ooredoo is making significant investments to expand its regional data center capacity by adding 20 to 25 megawatts on top of the existing 40 megawatts. This growth strategy is part of a larger plan to nearly triple the company’s data center capacity by the end of the decade. By segregating its data centers into a separate entity, Ooredoo aims to optimize operations and enhance service delivery to its customers.

Furthermore, Ooredoo is strategically segregating its undersea cables and fiber network into a separate entity, demonstrating its commitment to streamlining operations and maximizing the efficiency of its infrastructure. This strategic move follows a similar restructuring effort last year, which resulted in the creation of the largest tower company in the Middle East through a partnership with Kuwait’s Zain and Dubai’s TASC Towers Holding.

Through these strategic investments and partnerships, Ooredoo aims to strengthen its position as a leading provider of data center and telecommunication services in the Middle East region. By leveraging Nvidia’s cutting-edge AI technology, Ooredoo intends to differentiate its offerings, enhance customer experience, and drive innovation across its business segments. The successful deployment of Nvidia’s technology in Ooredoo’s data centers marks a significant milestone for both companies and underscores their commitment to delivering technological advancements to the region.

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https://amp.scmp.com/news/world/middle-east/article/3267721/nvidia-launch-middle-east-amid-us-curbs-ai-exports-concerns-china-dodging-ban