Nvidia, a leading American technology company, has entered into an agreement to deploy its cutting-edge artificial intelligence technology at data centers owned by Qatari telecommunications group Ooredoo across five Middle Eastern countries, according to Ooredoo CEO Aziz Aluthman Fakhroo. The deal represents Nvidia's inaugural large-scale launch in a region where Washington has restricted the export of advanced US chips to prevent Chinese firms from circumventing the newest AI technology via Middle Eastern nations.
As reported by Reuters, the partnership will position Ooredoo as the pioneer in the region, providing its data center clients in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives with direct access to Nvidia's AI and graphics processing technology. Ronnie Vasishta, Nvidia's senior vice president of telecoms, stated that offering this technology will enable Ooredoo to better assist its customers in deploying generative AI applications.
Nvidia's Al technology to debut in Middle East amid US export limits
Nvidia has signed an agreement to implement its Al technology at data centres owned by the Qatari telecom group Ooredoo in five Middle Eastern nations. 👇 pic.twitter.com/cWzXyK3RVb
— MediaLover (@Prince_828) June 24, 2024
Fakhroo emphasized the competitive advantage this agreement brings, stating, "Our b2b clients, thanks to this agreement, will have access to services that probably their competitors [won't] for another 18 to 24 months." Although the financial details of the deal, signed on June 19 during the TM Forum in Copenhagen, were not disclosed, Ooredoo confirmed that the specific Nvidia technology to be installed will depend on availability and customer demand.
While Washington permits the export of certain Nvidia technology to the Middle East, it imposes restrictions on the company's most sophisticated chips. Ooredoo is currently investing $1 billion to increase its regional data center capacity by an additional 20-25 megawatts, on top of its existing 40 megawatts, with plans to nearly triple that capacity by the end of the decade, according to Fakhroo.
The company has also strategically separated its data centers into a distinct entity, mirroring a similar move last year that resulted in the creation of the Middle East's largest tower company through a partnership with Kuwait's Zain and Dubai's TASC Towers Holding. Furthermore, Ooredoo has plans to spin off its undersea cables and fiber network into a separate entity, as revealed by Fakhroo.
Qatar has long maintained close ties with Hamas, the Islamist group that governs the Gaza Strip. The Gulf nation has provided significant financial support to Hamas, which has been designated as a terrorist organization by several countries, including the United States and the European Union. Qatar has hosted Hamas leaders and officials, providing them with a platform for diplomatic engagement and political support. During the current Israel-Hamas war, Qatar played a significant role as a mediator to broker a ceasefire between Israel and Hamas.
