Nvidia to Launch in Middle East Amid US AI Export Curbs: Is China Dodging the Ban?
Nvidia has officially signed a deal to bring its artificial intelligence technology to data centers operated by Qatari telecoms group Ooredoo in five Middle Eastern countries. This move is a significant milestone for Nvidia as it marks their first large-scale entry into a region where Washington has restricted exports of advanced US chips to prevent Chinese firms from accessing the latest AI technology through the Middle East.
Ooredoo to Offer Cutting-Edge AI Tech
Ooredoo, in a statement, revealed that it will become the first company in the region to offer its data center clients in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives direct access to Nvidia’s state-of-the-art AI and graphics processing technology.
Enhanced Customer Support with Nvidia's AI
Providing this technology enables Ooredoo to better assist its customers in deploying generative AI applications. Ronnie Vasishta, Senior Vice-President of Telecoms at Nvidia, emphasized the competitive edge this partnership grants to Ooredoo's B2B clients.
"Our B2B clients, thanks to this agreement, will have access to services that probably their competitors won’t for another 18 to 24 months," said Aziz Aluthman Fakhroo, CEO of Ooredoo, during an interview with Reuters.
Deal Signed at TM Forum in Copenhagen
The deal was finalized on the sidelines of the TM Forum in Copenhagen on June 19. Ooredoo and Nvidia have chosen not to disclose the value of the deal. Additionally, the exact type of Nvidia technology set to be installed in the data centers remains undecided, contingent on both availability and customer demand.
Strategic Expansion Despite US Export Limits
While Washington restricts the export of Nvidia’s most advanced chips, it does permit some Nvidia technology exports to the Middle East. Ooredoo is investing US$1 billion to expand its regional data center capacity by 20-25 additional megawatts, adding to its current 40 megawatts. The aim is to nearly triple this capacity by the end of the decade, according to Fakhroo.
Future Plans for Ooredoo
In a strategic move, Ooredoo has reorganized its data centers into a separate company—echoing last year’s creation of the Middle East’s largest tower company, in collaboration with Kuwait’s Zain and Dubai’s TASC Towers Holding. Ooredoo also has plans to separate its undersea cables and fiber network into a distinct entity, as stated by Fakhroo.
By spearheading this strategic enhancement of its infrastructure and capabilities, Ooredoo is well-positioned to lead the market in the deployment of advanced AI technologies, setting a new standard in the Middle East.
Stay tuned for more developments on how Nvidia and Ooredoo revolutionize AI technology deployment in the region, as they navigate regulatory landscapes and consumer demands.
