Thiel’s Selby says Mideast may reach one-quarter of AI spending

The Middle East could account for roughly a quarter of global AI infrastructure spending over the next five years, Thiel Capital Managing Director Jack Selby says.

If geopolitical instability forces delays or cancellations of investments in data centers and other large-scale AI projects, the ripple effects could damage the industry’s highly leveraged tech and infrastructure firms, Selby said in a CNBC interview.

“I think markets have underappreciated how important the Middle East region is for CAPEX spending as it relates to AI and AI infrastructure,” Selby said.

“If the Middle East starts taking some of these projects offline,” he said, “the impact on the market could be much, much, much larger than what is currently priced in.”