Hajra Naz
On May 13, 2025, President Donald Trump arrived in Riyadh to kick off his first international trip since starting his second term in office. But this wasn’t just another political visit, he brought along a powerhouse team of nearly 30 top U.S. business leaders, including CEOs from some of the biggest names in tech. Together, they came to sign a massive $600 billion in deals, with a strong focus on artificial intelligence and future tech.
This visit also marked a noticeable change in tone compared to the last administration. Under President Biden, the U.S. has taken a much more distant approach to Saudi Arabia, especially after the 2018 killing of journalist Jamal Khashoggi. Back then, Biden had promised to hold the kingdom accountable, citing a U.S. intelligence report that said Crown Prince Mohammed bin Salman had approved the operation behind Khashoggi’s death.
Now, with Trump back in office, it’s clear the U.S. is pivoting toward closer ties and looking to strengthen its role in the fast-growing global AI race.
Now, under Trump, relations are warming once again, both
- Diplomatically
- Economically.
Trump was greeted by the crown prince with full royal honors upon landing in Riyadh, a clear signal of restored ties.
America’s AI Chips: The New Oil?
AI, more especially the processors that drive massive AI infrastructure, was at the center of the trip’s business focus. As the Gulf nations, especially Saudi Arabia, look beyond oil for long-term success, these chips are considered essential to assisting them in making the shift to knowledge-based economies.
Trump’s entourage included big names in AI and tech: Elon Musk, OpenAI’s Sam Altman, Nvidia CEO Jensen Huang, AMD’s Lisa Su, IBM’s Arvind Krishna, and others. These executives are helping spearhead partnerships that could transform the Middle East into a global AI powerhouse.
Major Announcements: Nvidia, AMD, Qualcomm Ink Deals
Nvidia’s “AI Factories”
Leading AI chipmaker Nvidia announced a strategic partnership with Saudi Arabia’s newly launched AI startup, Humain. Backed by the Saudi Public Investment Fund (PIF), Humain plans to build massive AI data centers, dubbed “AI factories”, with a capacity of up to 500 megawatts.
To power these facilities, Nvidia will begin by supplying 18,000 of its cutting-edge GB300 Blackwell chips, with plans to deliver hundreds of thousands more over the next five years.
“These hyperscale AI data centers will provide a secure foundational infrastructure for training and deploying sovereign AI models at scale,” Nvidia said in a statement.
AMD and Qualcomm Follow Suit
AMD, another U.S. semiconductor leader, revealed a $10 billion agreement with Humain to develop complementary AI infrastructure. Qualcomm, based in San Diego, also signed a deal to supply advanced AI solutions to the kingdom.
AMD’s SVP Keith Strier emphasized that Humain wants flexibility in its hardware choices and doesn’t want to rely solely on one vendor, highlighting the competitive nature of this growing market.
The Launch of Humain: Saudi Arabia’s AI Ambitions
Humain, launched just a day before the forum, is a new government-backed company aimed at positioning Saudi Arabia as a global AI hub. It is part of the kingdom’s sweeping Vision 2030 initiative, a long-term plan to diversify the economy, reduce dependence on oil, and modernize the country.
Funded by the nearly $940 billion Public Investment Fund (PIF), Humain will lead the development of national AI infrastructure, including building data centers and training sovereign AI models.
AI as a Diplomatic Asset
The agreements announced in Riyadh reflect more than just commercial partnerships; they’re also a major diplomatic win for the Trump administration.
A few days before the trip, Trump’s administration made headlines by announcing it would roll back certain Biden-era export restrictions on AI chips. These curbs were originally intended to limit chip sales to foreign governments, particularly those seen as geopolitical rivals. Removing these barriers opened the door for Gulf countries to accelerate their AI ambitions, with the help of U.S. tech.
“The deals celebrated today are historic and transformative for both countries,” The White House said in a statement.
“They represent a new golden era of partnership between the United States and Saudi Arabia.”
A Regional AI Tour: Qatar and UAE Next
Following his Saudi stop, Trump will visit Qatar and the United Arab Emirates, two countries that also have their eyes set on AI leadership.
The UAE has been serious about leading in artificial intelligence ever since it made headlines in 2017 by appointing the world’s first Minister of AI. That ambition is still growing. In April 2024, Microsoft announced a $1.5 billion investment in G42, an AI firm based in Abu Dhabi and headed by a prominent royal figure.
In the United States, G42 has come under fire for purported connections to Chinese intelligence and technology companies, which it disputes. Deeper U.S.-UAE tech convergence was signaled by the Microsoft agreement, which forced G42 to sever relationships with Chinese hardware vendors like Huawei in favor of American businesses.
The Future of AI in the Gulf
The partnerships and investments unveiled this week could define the tech and geopolitical landscape in the Gulf for decades. With massive energy revenues being funneled into future-forward projects like AI, the Middle East is positioning itself not just as an economic player but as a technology innovator.
And for the United States, especially under Trump, these AI deals offer a new form of leverage on the world stage. AI chips may be the most powerful tool in America’s foreign policy arsenal today.
As Nvidia CEO Jensen Huang put it:
“AI, like electricity and internet, is essential infrastructure for every nation. Together with Humain, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom.”
