""The AI economy runs on tokens, tokens run on GPUs, and GPUs depend on Qatari helium, Israeli bromine, and LNG tankers with a single, 21-mile-wide exit from the Persian Gulf," said David Pan, Moody's Director and AI Industry Practice Lead, highlighting the critical nature of helium in the AI supply chain."
""Qatar accounts for roughly 30% of global high-purity helium supply, collecting it as a byproduct of natural gas production," emphasizing the importance of Qatar's helium production in the global market."
""Helium isn't manufactured; it accumulates over millions of years through radioactive decay and is captured only as a byproduct of natural gas processing," illustrating the unique challenges in sourcing helium for semiconductor manufacturing."
Helium supply disruptions due to Middle East conflicts are jeopardizing semiconductor supply chains essential for AI and data center development. Helium is crucial in chip manufacturing processes, and no effective substitutes exist. Qatar provides about 30% of the world's high-purity helium, and recent attacks on its industrial complex have led to significant supply issues. Major tech companies are investing heavily in AI infrastructure, relying on stable helium supplies that are now at risk due to geopolitical tensions.
Read at Fortune
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