C3.ai, Inc. (AI) saw its stock price plummet 5.33% during the night session, reflecting growing investor concerns about geopolitical risks impacting the artificial intelligence sector.

The sharp decline comes as military actions involving Iran escalate, casting uncertainty over hundreds of billions of dollars in AI infrastructure investments across the Middle East. According to recent reports, the conflict has already caused damage to data centers in the region and is prompting market reassessment of AI investment safety.

Gulf nations had been advancing a large-scale AI infrastructure initiative with total investments exceeding $300 billion, involving data centers, AI chips, computing power, and local AI model development. Major U.S. tech companies including Amazon, Microsoft, Oracle, and Alphabet have significant operational presence and investment commitments in the region. The conflict threatens to disrupt these plans, potentially leading to a pause in investments and increased operational security concerns.