Nvidia to Deploy its AI Tech in Middle Eastern Data Centers Owned by Ooredoo
Summary:
Nvidia is said to have secured a deal to implement its AI technology in data centers across the Middle East, owned by Qatari telecom group, Ooredoo. This makes Ooredoo the first in the region to offer direct access to Nvidia’s AI and graphics systems. The details of the AI technology to be installed remain undisclosed, as do the financial terms of the deal. This move will reportedly give Ooredoo's clients a competitive edge for 18 to 24 months. Ooredoo also plans to massively invest in increasing its data center capacity. The deal marks Nvidia's first significant launch in a region affected by US export restrictions.
Nvidia has allegedly inked a contract to implement its AI technology in data centers owned by Qatar and positioned in multiple Middle Eastern nations. This was disclosed in a June 24 statement made by Aziz Aluthman Fakhroo, CEO of the Qatari telecommunication company, Ooredoo. He stated that the contract positions Ooredoo as the first company in the region to provide its clientele with direct access to Nvidia's AI and graphics systems. Ooredoo's clientele comes from Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives. The contract gives these customers a competitive advantage for 18 to 24 months. Nvidia is set to mount their technology in Ooredoo’s data center, although the exact technology to be integrated is yet to be revealed. The kind of technology to be installed will be determined by consumers' demand and technology availability. The financial terms of the deal were left undisclosed.
Ooredoo plans on investing over a billion dollars to enhance its regional data center by 20-25 additional megawatts, supplementing its existing 40-megawatt capacity. The company intends to triple that capacity by decade-end as per Fakhroo. Ronnie Vasishta, Nvidia’s SVP of telecom, stated that Nvidia's technology would help Ooredoo serve its customers better concerning generative AI applications.
This agreement between Nvidia and Ooredoo signifies the AI chip maker's first significant introduction in a region affected by the United States' export restrictions. In 2023, US officials had extended Nvidia AI chip export restriction, citing attempts to block Chinese companies from accessing the advanced AI technology through 'backdoor' nations.
Notably, Nvidia overtook other companies to become the world’s most valuable listed firm this June with an estimated market value of roughly $3.34 trillion, slightly more than Microsoft's $3.32 trillion and Apple's $3.29 trillion. Nvidia provides approximately 80% of the high-level AI semiconductor chips used in premium data centers globally.
Published At
6/24/2024 4:59:52 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.