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Gulf states pile into Nvidia chips as demand for AI tech explodes

Aug 15, 2023 - markets.businessinsider.com
Saudi Arabia and the United Arab Emirates have joined the global race to acquire Nvidia chips, vital for powering artificial intelligence (AI) technology. The Gulf states have reportedly purchased thousands of Nvidia's graphic processing units (GPUs), with Saudi Arabia buying at least 3,000 H100 chips at $40,000 each. This follows reports of large orders from China's tech giants and Elon Musk's interest in the chips for his AI project.

The increasing demand for Nvidia's GPUs is raising concerns about a potential shortage. The company's stock has tripled in price this year due to the high demand, making it the S&P 500's best performer in 2023. The company's market capitalization has also risen to over $1 trillion.

Key takeaways:

  • Saudi Arabia and the United Arab Emirates are the latest to buy Nvidia chips to power their artificial intelligence ambitions, joining Elon Musk and China.
  • Saudi Arabia has purchased at least 3,000 of Nvidia's H100 chips at $40,000 dollars each, while UAE has ordered a fresh batch of semiconductors for its own large language model.
  • The demand for Nvidia's GPUs is so high that there are concerns the company might not be able to produce enough to meet the demand.
  • Nvidia's stock has roughly tripled in price this year, and its market capitalization has swelled to over $1 trillion, making it the S&P 500's best performer in 2023.
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