NVIDIA Explores Middle East as Next AI Frontier, Strikes Major Deal
6/24/2024NVIDIA Explores Middle East as Next AI Frontier, Strikes Major Deal
NVIDIA, a global leader in AI and GPU technology, has set its sights on the Middle East as its next strategic opportunity. The company is establishing large-scale AI data centers in collaboration with regional tech giant Ooredoo, marking its entry into this dynamic market.
From West to East: NVIDIA’s Global Dominance
NVIDIA has long held a dominant position in the US and European markets, providing cutting-edge hardware solutions. However, as we move eastward, the landscape becomes more complex. In China, NVIDIA once enjoyed a monopoly, serving tech giants like Tencent and Alibaba. But stringent US regulations disrupted its operations, leaving the company seeking alternative avenues.
Ooredoo Partnership: A Gateway to Middle Eastern Markets
Reuters reports that NVIDIA has partnered with Ooredoo, a Qatari telecoms group with a strong presence in five Middle Eastern countries: Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives. This strategic collaboration aims to establish large data centers, granting clients access to NVIDIA’s powerful hardware.
Accelerating AI Adoption
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NVIDIA’s Full-Stack AI Platform: Ooredoo will deploy NVIDIA’s full-stack AI computing platform, making it easier for customers to implement generative AI applications and services.
“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.” — Ronnie Vasishta, NVIDIA’s Senior Vice President of Telecom.
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Driving Digital Innovation: Ooredoo’s adoption of NVIDIA’s full-stack platform positions it at the forefront of the AI revolution in the Middle East and North Africa (MENA) region. As a leading digital infrastructure provider, Ooredoo aims to drive digitalization and innovation.
“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 digitalization and innovation as the leading digital infrastructure provider in the region.” — Aziz Aluthman Fakhroo, CEO of Ooredoo.
The Deal’s Value and Future Prospects
While specific details remain undisclosed, Ooredoo plans to deploy thousands of NVIDIA Tensor Core GPUs in its data centers. Clients will benefit from Ooredoo’s GPU-as-a-Service scheme, gaining access to cutting-edge AI capabilities for large-scale projects and generative AI integrations. This strategic move positions NVIDIA to secure a significant foothold in the Middle East, potentially paving the way for further expansion.
Navigating US Restrictions
Despite US restrictions on cutting-edge AI chips, the Middle East offers a more favorable business environment for NVIDIA compared to China. As the US views the region as a key ally, any restrictions may ease if Team Green continues to attract substantial interest.
Middle East: A Hotbed for AI Investment
OpenAI’s Sam Altman recently secured a major funding deal through UAE-funded investment firm MGX during his visit to the Middle East. The region’s eagerness to invest in trending sectors, particularly AI, bodes well for NVIDIA. If successful, this move could further isolate China in the AI race.