Nvidia to Launch in Middle East Despite U.S. AI Export Curbs

The CEO of Qatari telecoms operator Ooredoo told Reuters that Nvidia will deploy its artificial intelligence technology at its data centers in five Middle Eastern countries

The agreement signifies Nvidia’s initial large-scale launch in a region where the United States has restricted the export of advanced U.S. processors to prevent Chinese companies from exploiting Middle Eastern countries as a backdoor to access the most advanced AI technology.

Ooredoo announced in a statement that it will become the first company in the region to provide direct access to Nvidia’s AI and graphics processing technology to clients of its data centers in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives.

Ronnie Vasishta, Nvidia’s senior vice president of telecom, stated that the technology will enable Ooredoo to more effectively assist its clients in deploying generative AI applications.

“Our business-to-business clients will have access to services that their competitors are unlikely to offer for the next 18 to 24 months as a result of this agreement,” stated Aziz Aluthman Fakhroo, CEO of Ooredoo, in an interview with Reuters.

The company did not disclose the value of the agreement, which was executed on the outskirts of the TM Forum in Copenhagen on June 19.

Additionally, Ooredoo declined to specify the specific Nvidia technology it intends to implement in its data centers, stating that it is contingent upon customer demand and availability.

Washington permits certain Nvidia technologies to the Middle East, but it restricts the export of the company’s most advanced processors.

According to Fakhroo, Ooredoo is investing $1 billion to increase the capacity of its regional data centers by 20-25 megawatts in addition to the 40 megawatts it currently has. The company intends to treble this capacity by the end of the decade nearly.

The company has established a distinct entity to house its data centers, following a similar initiative last year to develop the Middle East’s largest tower company in a partnership with Kuwait’s Zain and Dubai’s TASC Towers Holding.

According to Fakhroo, Ooredoo intends to establish a distinct entity for its fiber network and undersea cables.