On his initial overseas visit of the second term, US President Donald Trump arrived in Saudi Arabia with a delegation of nearly three dozen CEOs from leading American corporations, including prominent figures from major tech companies. This visit resulted in agreements amounting to $600 billion in deals. The focus was on delivering advanced artificial intelligence (AI) technology that is expected to play a pivotal role in shaping the Middle East’s technological landscape as the region transitions away from oil dependency.
These agreements underscore the strategic value of US AI technology as a diplomatic tool for President Trump, aiming to strengthen relations with Gulf nations, particularly Saudi Arabia. Among the delegation were notable tech leaders such as Elon Musk, Sam Altman of OpenAI, Jensen Huang from Nvidia, and Arvind Krishna of IBM, who accompanied Trump to his initial stop in Riyadh. There, he was warmly received by Crown Prince Mohammed bin Salman.
This approach marks a departure from the stance of former President Joe Biden, who had previously taken a hard line against Saudi Arabia following the 2018 murder of journalist Jamal Khashoggi. Notably, a US intelligence report linked the Crown Prince to the operation against Khashoggi, yet he personally welcomed Trump upon his arrival.
Just days before embarking on this three-country Gulf tour, the Trump administration announced plans to roll back certain restrictions from Biden’s tenure, which were designed to prevent AI chips from reaching foreign adversaries, potentially impacting their distribution in the region.
According to the White House, these groundbreaking deals signal a new era of partnership between the United States and Saudi Arabia. Despite being the largest oil exporter globally, Saudi Arabia and its neighbors are channeling revenues from energy sales into diversified economic initiatives. The Saudi Vision 2030 plan aims to modernize the kingdom and reduce its oil reliance, with “giga-projects” as central components.
Saudi Arabia’s Public Investment Fund recently launched Humain, an AI startup aimed at establishing the nation as a competitive global AI hub. Nvidia, a leading AI chip designer, has announced a strategic collaboration with Humain to create AI “factories” in Saudi Arabia with a substantial projected capacity. Nvidia plans to supply hundreds of thousands of its advanced graphic processing units over the next five years to support these facilities.
AMD’s CEO, Lisa Su, also participated in the Riyadh discussions, revealing a $10 billion agreement with Humain to construct AI infrastructure. Qualcomm is similarly engaged, having signed a separate contract to develop advanced AI data centers.
Following Saudi Arabia, Trump’s itinerary includes visits to Qatar and the United Arab Emirates, both of which have their own technological aspirations. The UAE, notably, appointed the world’s first AI minister in 2017. In April 2024, Microsoft declared a $1.5 billion investment in G42, an AI entity in Abu Dhabi, led by a prominent member of the royal family. Reports suggest the Trump administration is contemplating a significant AI chip sale to G42.
Concerns over G42’s alleged connections to Chinese military and intelligence entities have been raised by a US congressional committee, prompting a call for investigation by the Commerce Department. However, G42 has refuted such claims, and the Microsoft investment necessitated the severance of ties with Chinese hardware suppliers, including Huawei, in favor of US companies.
