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Wednesday, May 14, 2025

US Technology Firms Forge AI Partnerships During Trump’s Gulf Tour

US Technology Firms Forge AI Partnerships During Trump’s Gulf Tour

Donald Trump's visit to Gulf states heralds $600 billion in commitments from Saudi Arabia towards American AI firms, marking a significant economic collaboration.
A number of US technology companies have announced significant partnerships in the Middle East as part of Donald Trump’s tour of Gulf states, with Saudi Arabia pledging $600 billion in commitments towards American artificial intelligence (AI) firms.

Among the notable agreements is one involving Nvidia, which is set to deliver hundreds of thousands of AI chips to Saudi Arabia.

The initial shipment will consist of 18,000 'Blackwell' chips, destined for Humain, an AI startup owned by Saudi Arabia’s sovereign wealth fund.

In a separate development, Cisco has signed an agreement with G42, an AI firm based in the United Arab Emirates (UAE), aimed at bolstering the nation’s AI capabilities.

Trump’s upcoming visit to the UAE on Thursday is expected to further solidify these technological collaborations.

Reports indicate that the administration is finalizing a deal that would allow the UAE to procure substantial quantities of Nvidia’s AI chips.

Investment flows will also see transactions moving in both directions.

The White House announced that DataVolt, a Saudi Arabian company, plans to invest $20 billion in AI data centers and energy infrastructure in the United States.

Additionally, major technology firms including Alphabet’s Google, DataVolt, Oracle, Salesforce, Advanced Micro Devices, and Uber are set to invest collectively $80 billion in transformative technologies across both countries, although specific details regarding these investments remain undisclosed.

Cisco’s recent agreement with G42 includes plans to explore collaborative efforts on cybersecurity technologies utilizing US-based AI as well as AI data center technologies.

This strategic partnership reflects Saudi Arabia's goals to transition its economy away from oil dependence and establish itself as an AI hub regionally and globally.

Crown Prince Mohammed bin Salman recently announced the establishment of Humain, which aims to develop and manage advanced AI technologies in Saudi Arabia.

Through this initiative, the country is focusing on leveraging Nvidia’s platforms to enhance its position in AI, GPU cloud computing, and digital transformation initiatives.

The control over advanced semiconductors, which are crucial for sophisticated AI capabilities, has provided Trump with a robust negotiating stance during his Middle Eastern visit.

The agreements for AI chips with Saudi Arabia highlight a stark contrast to the stringent trade restrictions the US has enforced on such technologies with China; for instance, Nvidia has been barred from selling its latest models to Chinese enterprises, even as some Chinese firms, including DeepSeek, have managed to develop competitive AI solutions.
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