Tech investor Jack Selby has warned that markets are not adequately accounting for the risk of a potential pullback by Middle East sovereign wealth funds in the artificial intelligence (AI) sector.
Selby, managing director of Thiel Capital, said such a move could drain hundreds of billions of dollars from the AI boom and threaten key data center projects.
Middle East investors, including government-backed entities, are estimated to represent about a quarter of global AI investments over the next five years.
The potential shift in investment strategy by Middle Eastern funds could have a significant market impact, particularly in the AI and technology sectors.
Selby's comments come amid growing concerns about the sustainability of current investment flows and the geopolitical dynamics influencing capital allocation in the region.
The Middle East has been a major player in global technology and infrastructure investments, with sovereign wealth funds playing a pivotal role in funding high-growth sectors like AI.