Markets are underpricing the risk of Middle East pullback in AI, says tech investor Jack Selby
Middle East investors account for roughly a quarter of global AI investments over the next 5 years, said Jack Selby, managing director of Thiel Capital.
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Selby estimates that half of the Middle East's AI funding is dedicated to data centers located in the region. The other half is allotted to projects and data centers worldwide. Middle East funds and companies have already started canceling various shipping and business contracts by invoking force majeure, he said. The big risk is that they start canceling data centers as well."Markets don't seem to grasp that this is a very real situation," he said. "It's very volatile. I hope and I pray that it goes back to some semblance of normalcy soon. But it seems to me that markets are underpricing this volatility and the risk."Beyond the war, AI also faces a broader risk of overinvestment and speculation, Selby said.
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