Nvidia Confirms Middle East AI Ambitions Unchanged Despite Iran Tensions

Gulf nations remain steadfast in their pursuit of artificial intelligence (AI) development, with demand for the necessary infrastructure showing no signs of wavering, according to a senior Nvidia official. Ruth Berry, who heads global policy for Nvidia’s government affairs team, stated on Wednesday that regional countries view AI as a crucial opportunity for economic diversification. "The imperatives these countries see have not changed, they still see it as an opportunity to diversify their economies," Berry explained during a discussion at the Middle East Institute in Washington. She highlighted the persistent global demand for Nvidia’s graphics processing units (GPUs), which are fundamental to AI infrastructure, noting that "Infrastructure is really sticky." Berry added that countries in the region maintain a "clear vision for where they want to go on AI," which supports their ongoing initiatives.

The UAE, a significant partner of Nvidia, is actively advancing its AI agenda. In May, the UAE received its first shipments of Nvidia's advanced CPUs and GPUs, as announced by the country's ambassador. This follows recent efforts by the UAE to acquire Nvidia chips for its AI projects, which had been complicated by stringent US export controls designed to maintain American leadership in AI. Washington ultimately approved these shipments after the UAE provided assurances against unauthorized access to the technology.

The ongoing conflict involving Iran has prompted scrutiny of the Gulf's expanding AI infrastructure, particularly in light of recent Iranian attacks in the region. However, technology analyst Mohammed Soliman, a senior fellow at the Middle East Institute, suggested that the threat of conflict might actually spur increased AI investments from countries like the UAE and Saudi Arabia. Soliman drew a parallel to Ukraine's resilience in its conflict with Russia, attributing a significant part of its ability to withstand the invasion for over four years to its AI investments and innovations in areas such as drone strikes and troop logistics. "Without AI, Ukraine would have lost the war … war is a function of compute," he asserted, adding that Middle Eastern governments have taken note of this lesson. "Building AI compute is essential to defending against Iranian aggression," Soliman stated.

The discussion also touched upon the influence of US AI technology products in the Middle East amidst competition with China. Soliman indicated that recent attacks from Iran could favor US companies in purchasing decisions, especially since "It's been widely reported that China has assisted Iran." He further noted that the Middle East remains a highly attractive region for US companies and the government as the global race for AI dominance intensifies. Factors such as abundant energy resources and strategic geographic locations make countries like the UAE and Saudi Arabia ideal for AI development. "You need a nearby compute hub that's capable of supporting multiple markets," Soliman explained, emphasizing their financial capacity to invest in this infrastructure. Nazak Nikakhtar, an international trade and national security lawyer, commented on China's potential advantage due to the rapid decision-making processes at the highest levels of its government.