The Middle East War and Rising Interest Rates Threaten AI Infrastructure Financing
The Middle East war and rising interest rates are threatening the capital inflows that support AI infrastructure. AWS has acknowledged that drone attacks on its Bahrain and UAE facilities caused permanent data loss for some customers, and most remain offline. Saudi Arabia this month pledged $15 billion in domestic AI investment, Qatar has pulled back, while the UAE and Saudi Arabia are still pressing ahead; Jack Selby warned that Middle Eastern capital accounts for 25% of global AI investment. Meta's Muse is catching up to Instinct, which is reportedly seeking a $10 billion valuation.

The Middle East war and rising interest rates are threatening the capital inflows that support AI infrastructure. AWS has acknowledged that drone attacks on its Bahrain and UAE facilities caused permanent data loss for some customers, and most remain offline. Saudi Arabia this month pledged $15 billion in domestic AI investment, Qatar has pulled back, while the UAE and Saudi Arabia are still pressing ahead; Jack Selby warned that Middle Eastern capital accounts for 25% of global AI investment. M
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