U.S. President Donald Trump returned from his first international trip of his second term with over $600 billion in signed deals, highlighting America’s tech leadership and strengthening ties with key Gulf nations. Trump was joined by top U.S. CEOs—including Elon Musk, OpenAI’s Sam Altman, Nvidia’s Jensen Huang, and IBM’s Arvind Krishna—on a tour that began in Saudi Arabia and will continue through Qatar and the United Arab Emirates.
AI as the New Oil in U.S.-Gulf Relations
Central to these agreements were advanced AI chips that will power some of the Middle East’s largest tech infrastructure projects, key to diversifying the region’s economies away from oil. The move aligns with Saudi Arabia’s Vision 2030 and signals a significant policy shift from the Biden administration, which had previously restricted high-tech exports to the region.
Trump rolled back several Biden-era export controls on AI hardware days before his trip, enabling U.S. tech firms to capitalize on growing demand from the Gulf.
“The agreement celebrated today is historic and transformative for both countries,” the White House stated, calling it a “new golden era” for U.S.-Saudi relations.
Big Names, Bigger Deals
Nvidia announced a strategic partnership with Saudi startup Humain, backed by the Saudi Public Investment Fund, to build AI factories with 500 megawatts of capacity.
It will ship 18,000 Grace Blackwell (GB300) chips initially, with hundreds of thousands expected over the next five years.
AMD, led by CEO Lisa Su, signed a $10 billion agreement to support AI infrastructure in the kingdom.
Qualcomm also signed an agreement to provide AI data center technology.
Humain, Saudi Arabia’s newly launched AI startup, aims to become a “globally competitive AI hub” and is making deals with multiple U.S. chipmakers to avoid supplier lock-in, according to AMD’s Keith Strier.
Geopolitical Shifts: Embracing Saudi Arabia
The visit marks a stark departure from the previous U.S. administration’s icy stance on Riyadh. Under President Biden, Saudi Crown Prince Mohammed bin Salman was isolated diplomatically after the murder of journalist Jamal Khashoggi. Trump’s warm welcome in Riyadh—met with a royal purple carpet ceremony—signals a dramatic reengagement with the Gulf’s most powerful figure.
UAE and Qatar Next on the Itinerary
Following Saudi Arabia, Trump will visit Qatar and then the United Arab Emirates, both of which are advancing ambitious AI and technology strategies.
The UAE appointed the world’s first AI minister in 2017.
In April 2024, Microsoft invested $1.5 billion in G42, an Abu Dhabi-based AI firm chaired by UAE royalty.
The Trump administration is now considering a deal to sell hundreds of thousands of AI chips to G42, despite prior concerns about G42’s ties to Chinese military and intelligence entities—ties the company denies.
Under the Microsoft deal, G42 must pivot away from Chinese suppliers like Huawei to American partners.
Strategic Takeaway
The deals represent more than just business—they are a strategic move in the global AI arms race. By securing major infrastructure projects and redirecting Gulf tech ambitions away from China and toward the U.S., Trump is asserting American dominance in AI technology and redefining the U.S. presence in the Middle East.
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