Despite Iran conflict, AI plans 'have not changed' in Middle East, Nvidia says

Despite ongoing conflict with Iran, Gulf countries have not abandoned their ambitions in artificial intelligence (AI), and demand for the necessary infrastructure to develop the technology remains robust, according to a senior Nvidia official. Ruth Berry, who oversees global policy for Nvidia's government affairs team, stated this during a discussion at the Middle East Institute in Washington.

"Fundamentals have not changed," she emphasized, highlighting the persistent global demand for Nvidia's graphics processing units (GPUs), which form the backbone of contemporary AI infrastructure.

Ms Berry noted that Gulf countries maintain a clear vision for their AI future, which she believes bodes well for future plans. The United Arab Emirates (UAE), which has forged several investment partnerships with the U.S. technology giant, is among the countries leading the way. In May, the first shipments of Nvidia's highly sought CPUs and GPUs arrived in the UAE, as announced by the country's ambassador.

Prior to this, stringent export controls designed to safeguard the U.S. lead in AI made such purchases challenging. However, Washington ultimately approved the shipments after the UAE provided security assurances to prevent unauthorized access to the chips.

Still, the Iran conflict has cast doubt on the Gulf's burgeoning AI infrastructure, especially following Iranian attacks in the region. Mohammed Soliman, a technology analyst and senior fellow at the Middle East Institute, posited that the threat of conflict could spur countries like the UAE and Saudi Arabia to escalate their AI investments.

He cited Ukraine's resilience against Russia's invasion for over four years as a testament to the power of AI investments, which Ukraine employed to enhance drone strikes, troop logistics, and other battlefield aspects. Soliman argued that without AI, Ukraine would have succumbed to the war. He asserted that governments throughout the Middle East have heeded this lesson, recognizing that building AI compute is crucial for defending against Iranian aggression.

The conversation primarily revolved around the potential influence of U.S. AI technology products in the Middle East and China's role in this arena. Soliman stated that the recent Iranian attacks would weigh in favor of the U.S. when it comes to purchasing decisions, given that China is also a major player. He highlighted that the Middle East continues to be highly attractive to U.S. companies and government entities due to the intensifying race for AI dominance.

Soliman also pointed out that the UAE and Saudi Arabia possess an abundance of energy, a critical prerequisite for AI, alongside a strategic geographical advantage, making them appealing locations for building AI infrastructure.