Cassava Technologies’ US$700m Nvidia AI data centre deal signals a new strategy to counter Chinese influence in African tech infrastructure
The strategic alliance formed between Cassava Technologies and tech behemoth Nvidia marks a transformative moment for procurement executives looking to leverage AI data centre technology in Africa.
The partnership focuses not only on technical infrastructure but also on reshaping Africa’s approach to technological advancements by integrating private sector initiatives.
Cassava’s development of the first NVIDIA-powered AI data centre on the continent is a pivotal step in this direction. The project contrasts notably with China’s state-driven tech investments under its Belt & Road and Digital Silk Road initiatives.
Eric Omorogieva, an analyst at the New Lines Institute, highlights Nvidia’s dominance in the AI sector due to its groundbreaking advances in GPUs: “Few companies come close to the dominance of Nvidia in the AI sector due to its advances in GPUs.”
Cassava’s procurement of Nvidia’s innovative hardware represents a game-changer for leaders aiming to bridge the technological divide in Africa.
Addressing Africa’s computing deficit
The collaboration directly targets an infrastructure gap impeding the growth of the AI market in the region.
According to the UN Development Programme, a mere 5% of African AI professionals have the requisite computational tools for innovation.
The segment faces a shortage of on-premise graphics processing units (GPUs) and operates under budget constraints for cloud access, hampering AI developments.
“Addressing this computational gap necessitates specialised infrastructure for AI development,” continues Eric, underscoring the need for private investment in robust AI facilities.
Through Nvidia’s partnership with Cassava, there is an opportunity to enhance Africa’s AI capabilities via AI data centres, often referred to as AI factories. This infrastructure will provide enhanced system performance and scalability, crucial for turning raw data into actionable business insights.
Strategic rollout across key African markets
Commencing in South Africa, Nvidia has already deployed 3,000 GPUs at a Cassava-operated data centre as part of the project’s first phase. In the forthcoming three to four years, procurement professionals will witness the expansion of this infrastructure, with an additional 12,000 GPUs set to launch in Egypt, Nigeria, Kenya and Morocco.
Cassava has also inked a memorandum with the South African AI Association, enabling more than 3,000 AI specialists to access high-performance hardware, a critical asset in their field of work.
The initiative gives local enterprises and government entities a chance to expedite digital innovation across sectors such as healthcare, agriculture and fintech.
“Africa has historically contended with receiving second-rate technology,” adds Ziaad Suleman, CEO of Cassava Technologies.
The collaboration with Nvidia signifies a shift towards providing state-of-the-art technology.
International Investments and Strategic Implications
Geopolitical shifts are increasingly reflected in business moves, especially with the collusion of technological giants from the US and China on the global stage.
As AI technologies advance, both nations are vying to set the standards for future global AI governance by exporting their digital infrastructure worldwide.
Chinese firms have advanced rapidly, offering affordable AI models, yet American entities like Nvidia continue to lead with superior hardware, offering procurement opportunities to foster indigenous advancements in African AI platforms.
Furthermore, a new “commercial diplomacy” strategy by the US is reshaping international relations in Africa, moving from development aid to fostering trade and private sector investments.
This strategic shift underscores the importance for procurement specialists to stay attuned to these transformation dynamics while exploring opportunities that align with international developments in AI technology.
