Jack Selby warns Middle East AI funding pullback
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- Jack Selby says Middle East sovereign wealth funds represent roughly a quarter of global AI investment over the next five years.
- OpenAI is courting $50 billion from UAE and Saudi sovereign funds for its UAE campus, partnering with Oracle, Nvidia and Cisco.
- Microsoft plans to invest $15 billion in the UAE by 2029 for AI infrastructure.
- Middle East funds have begun invoking force majeure to cancel shipping and business contracts, raising the risk of data‑center cancellations.
- Hyperscalers are projected to spend over $700 billion on AI infrastructure this year, amplifying exposure to any funding pullback.
Why it matters: AI data‑center developers lose hundreds of billions in pledged funding, while AI equity investors see valuations tumble as capital dries up, forcing a sharp correction in tech‑focused portfolios.
