Jack Selby warns markets underprice Middle East AI investment pullback risk

5 articles · Updated · CNBC · Apr 30

Selby said Middle East sovereign funds and state entities account for about a quarter of AI investment commitments over five years, with hundreds of billions of dollars and data-centre projects at stake.
He said a prolonged Iran war could push the UAE, Saudi Arabia and others to redirect capital to domestic rebuilding, threatening regional and global AI infrastructure and tech companies.
Selby also warned AI shows bubble-like excess, with hyperscalers expected to spend more than $700bn this year, and said losses from any bust could reach tens or hundreds of billions.

Could a sudden Middle East capital pullback trigger a global AI crash, or is the sector resilient enough to withstand such a shock?

With AI data centers now military targets, how can tech companies safeguard critical infrastructure in volatile regions?