Nvidia, a global leader in AI and graphics processing technology, has signed a landmark agreement with Qatari telecommunications giant Ooredoo to deploy advanced AI technology in data centers across five Middle Eastern countries.
The deal marks Nvidia’s first major foray into a region where the United States restricts exports of advanced chips to prevent Chinese companies from accessing the latest AI technology through Middle Eastern intermediaries.
Ooredoo CEO Aziz Al-Suman Fakhroo revealed the deal to Reuters, highlighting the strategic importance of the partnership, which will see Ooredoo’s data centers in Qatar, Algeria, Tunisia, Oman, Kuwait and the Maldives become the first in the region to offer customers direct access to Nvidia’s cutting-edge AI and graphics processing technology.
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“This transaction gives us an advantage over our competitors and enables us to offer our B2B clients a service that no other company in the region can offer for the next 18 to 24 months,” Fakhroo said.
The partnership is aimed at strengthening Ooredoo’s capabilities to support customers in the adoption of generative AI applications, a goal highlighted by Ronnie Vasishta, senior vice president of communications at Nvidia.
Overcoming geopolitical challenges
Nvidia’s expansion into the Middle East despite U.S. export controls marks a major shift in the company’s position in the global semiconductor industry. Washington has allowed certain Nvidia technologies to be exported to the Middle East while restricting exports of the company’s latest chips to prevent them being exploited by Chinese companies.
The deal with Ooredoo marks a major step into the Middle East for Nvidia and is expected to pave the way for the company’s expansion into the region and beyond. By integrating Nvidia’s technology, Ooredoo aims to meet the growing demand for AI-driven solutions, which are expected to drive significant growth in the communications and data services market.
Financial details of the deal were not disclosed, but the agreement was formally signed at the TM Forum in Copenhagen on June 19. Given the geopolitical context, this move by Nvidia and Ooredoo is particularly noteworthy.
In line with this technology upgrade, Ooredoo is investing $1 billion in expanding its data center capacity in the region. The investment will add 20-25 megawatts to its current 40 megawatts, nearly tripling its capacity by the end of the decade. The expansion is essential to meet growing data processing and storage demands as more companies in the region adopt AI technologies.
Ooredoo’s strategy involves not only expanding its technological capabilities but also restructuring its corporate assets to become more efficient and focused.
The spin-off of its data centers into a separate entity comes after the company created the Middle East’s largest tower company last year in partnership with Kuwait’s Zain and Dubai’s TASC Towers Holding. Ooredoo also plans to spin-off its undersea cables and fiber optic network into separate entities to further streamline operations and develop new revenue streams, Fakhroo said.
Nvidia’s impressive growth
Nvidia’s journey to become the world’s most valuable chipmaker is truly remarkable. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia initially focused on graphics processing units (GPUs) for gaming. Over the years, the company has expanded its reach to capitalize on the growing demand for high-performance computing and AI.
In recent years, Nvidia’s AI technology has revolutionized a wide range of industries, including healthcare, automotive, finance and communications. The company’s GPUs are the foundation of AI research and development, powering everything from self-driving cars to advanced medical imaging systems.
Nvidia’s market capitalization soared in 2020 due to growing adoption of AI and strategic acquisitions such as Mellanox Technologies and Arm Holdings. By 2023, Nvidia had overtaken competitors such as Intel and AMD to become the world’s most valuable semiconductor company.
Earlier this month, Nvidia surged to become the world’s most valuable public company, roughly two weeks after it overtook Apple to become the world’s second-largest company. The company’s shares rose 3.6%, giving it an unprecedented market capitalization of $3.34 trillion. The surge has also helped Nvidia overtake Microsoft, which is now worth $3.32 trillion.
This rapid growth is attributed to innovative technology, strategic partnerships, and a relentless focus on AI.
