Nvidia, a leading player in artificial intelligence (AI) technology, has announced a significant partnership with Qatari telecom provider Ooredoo, aimed at introducing advanced AI solutions to the Middle East. This move comes amid tightening US export restrictions on AI technologies.

In a detailed report by Reuters on June 24, Aziz Aluthman Fakhroo, CEO of Ooredoo, revealed that the collaboration with Nvidia will position the company as the first in the region to offer direct access to Nvidia’s cutting-edge AI and graphics technology. This landmark deal will see Nvidia's AI technology deployed in data centers owned by Ooredoo across several Middle Eastern countries, including Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives.

Revolutionizing the Telecom Sector

Fakhroo emphasized the competitive edge this partnership will provide to Ooredoo's clients, suggesting that rivals may not have similar access to such advanced technology for another 18 to 24 months. Nvidia's installations in Ooredoo's data centers will be tailored based on customer demand and technology availability, although the specific types of AI technology to be deployed remain undisclosed. The financial specifics of the agreement have also been kept under wraps.

Ooredoo is planning substantial investments to enhance its data center capacities, projecting an investment of over $1 billion to boost capacity by an additional 20-25 megawatts, supplementing the current 40 megawatts. By the end of the decade, Ooredoo aims to triple this capacity, reflecting its commitment to supporting the deployment of generative AI applications. Ronnie Vasishta, Nvidia’s senior vice president of telecom, highlighted that Nvidia's technology will significantly enhance Ooredoo’s ability to serve its clients with advanced AI capabilities.

Navigating US Export Curbs

This partnership marks Nvidia's first large-scale foray into a region affected by the US's stringent export restrictions on high-level AI chips. In August 2023, the US government extended these restrictions to several Middle Eastern countries to curb Chinese companies' indirect access to advanced AI technologies.

Despite these regulatory challenges, Nvidia continues to solidify its market dominance. In June, Nvidia was recognized as the world’s most valuable publicly traded company, with a market capitalization of approximately $3.34 trillion, slightly ahead of Microsoft and Apple. Nvidia supplies nearly 80% of the sophisticated AI semiconductor chips used in high-end data centers globally, underscoring its pivotal role in the AI industry.

This strategic partnership with Ooredoo not only expands Nvidia’s footprint in the Middle East but also underscores the company's resilience and adaptability in navigating complex geopolitical landscapes while continuing to lead the global AI technology market.