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Ooredoo CEO says U.S. chip restrictions in Middle East are just standard business practice following Nvidia deal

Ooredoo CEO says U.S. chip restrictions in Middle East are just standard business practice following Nvidia deal
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A recent agreement between Nvidia and telecommunications company Ooredoo will result in the deployment of thousands of Nvidia GPUs in 26 data centers across Qatar and five other countries in the Middle East and North Africa region. These GPUs will enhance the processing capabilities of data centers, enabling the use of AI chatbots and other tools crucial for a country’s AI infrastructure.

The deal comes after the United States imposed restrictions on the sale of advanced chips to certain Middle Eastern nations due to concerns about technology interception by China. However, the restrictions do not apply to GPUs, which are the focus of this agreement. Ooredoo has assured that the deal complies with all US regulations, and no new licenses have been created for different chips under the partnership.

In the race to secure the latest artificial intelligence technology, there has been tension between China and the United States. Companies in the region, such as G42 in the UAE, have pledged to move away from Chinese hardware to align with US regulations. Following this trend, Ooredoo’s partnership with Nvidia aims to position the chipmaker as a central provider of AI technology in the region, driving innovation, development, and job creation.

The next-generation GPUs involved in the deal are specially designed for artificial intelligence, offering advanced machine learning and AI model utilization. These chips will be used to enhance citizen services, improve the efficiency of corporations, and advance research and development efforts.

Ooredoo has also committed to investing $1 billion to expand its regional data center capacity, anticipating a rise in demand for cloud and AI services. The company’s CEO expects this investment to yield positive returns in the coming years, as demand for these technologies continues to grow.

Furthermore, Nvidia recently experienced a surge in value, briefly becoming the world’s most valuable company before a slight decline. Despite this, the chipmaker remains optimistic about its future prospects and the potential impact of its partnership with Ooredoo in the Middle East and North Africa region.

Article Source
https://www.cnbc.com/amp/2024/06/26/nvidia-deal-us-chip-curbs-just-business-as-usual-ooredoo-ceo.html

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