Saudi Arabia and USA: Billion dollar deal for AI revolution!

Saudi Arabia and USA: Billion dollar deal for AI revolution!

Saudi Arabia is aiming for a comprehensive technological transformation and is planning significant investments in future technologies. As part of these efforts, the kingdom has launched a major AI alliance with the US led by US President Donald Trump. Loud Telepolis Agreements are expected to expand access to state-of-the-art AI chips from US manufacturers such as Nvidia and AMD. This comes during Trump's state visit to Saudi Arabia and the United Arab Emirates (UAE).

As part of these agreements, Nvidia has announced that it will supply several hundred thousand AI processors to the Saudi startup Humain over the next five years. These include 18,000 of the state-of-the-art GB300 Grace Blackwell chips. Humain was founded specifically to promote AI infrastructure in the Kingdom.

Role of tech giants

In addition to Nvidia, AMD also plans to supply chips and software for data centers in Saudi Arabia as part of a $10 billion project. Amazon is also investing over $5 billion in a so-called “AI zone” to be created in the kingdom. Cisco has also expressed interest in a partnership and wants to combine its expertise with Saudi Arabia's AI ambitions.

To support AI startups, the Saudi venture capital firm STV initiated a $100 million fund, in which Google also has a stake. These measures are part of Saudi Arabia's strategy to diversify economically from its previously dominant oil revenues and to align the economy with future technologies.

Export restrictions and security concerns

As technological cooperation between the US and Saudi Arabia intensifies, the Trump administration has repealed the “AI Diffusion Rule” that was implemented under the Biden administration. This regulation resulted in strict export restrictions for AI technology. But critics in Washington are raising security concerns amid fears that easing export restrictions could make it easier to transfer chips to China.

Particular attention was also paid to the Emirati company G42, whose ties to Huawei have been criticized by members of the US House of Representatives. These aspects raise questions regarding security and geopolitical implications.

The exciting developments were accompanied by a $142 billion arms deal between the US and Saudi Arabia. As a result, the stock prices of Nvidia and AMD rose significantly, indicating the high level of investor interest in these future-oriented technologies.

Saudi Arabia's plan to establish Humain under the leadership of Crown Prince Mohammed bin Salman clearly shows that the Kingdom is committed to investing in the development of AI services and products and thus playing a key role in the global technology market.