US President Donald Trump didn’t show up empty-handed on the first international trip of his second term. Joining him in Saudi Arabia were almost three dozen CEOs of America’s biggest companies, including Big Tech giants that signed $600 billion worth of deals. They brought some of the most coveted must-haves of the global economy: artificial intelligence (AI) chips that will power the Middle East’s biggest tech infrastructure projects, which are seen as crucial to securing the region’s post-oil future. The agreements highlight the importance of America’s AI offerings as a key bargaining chip for Trump as he seeks to project himself as a consummate dealmaker and diplomat on the world stage, as well as securing closer ties with countries in the Gulf, especially Saudi Arabia. Elon Musk, OpenAI’s Sam Altman, Nvidia’s Jensen Huang and IBM’s Arvind Krishna were all part of Trump’s entourage for his first stop in Saudi Arabia on Tuesday, where he was met on the tarmac by the kingdom’s crown prince Mohammed bin Salman. It’s a significant policy shift from former President Joe Biden, who had promised to make the kingdom a “pariah” after the murder of Washington Post columnist Jamal Khashoggi in 2018. A US intelligence report says that the crown prince, who welcomed Trump on the royal purple carpet on Tuesday, approved the operation to capture or kill the Saudi journalist. Days before the president left for his three-nation tour of the Gulf, the Trump administration announced plans to rescind a set of Biden-era curbs meant to keep AI chips out of the hands of foreign adversaries, which would have affected their sale to countries in the region. “The deals celebrated today are historic and transformative for both countries and represent a new golden era of partnership between the United States and Saudi Arabia,” the White House said in a statement Tuesday. Although Saudi Arabia is the world’s biggest oil exporter, the kingdom and neighboring countries are using money from energy sales to diversify their economies. Saudi Arabia has announced that initiatives dubbed “giga-projects” are key to the country’s Vision 2030 plan, which aims to modernize the country and wean its economy off oil. As part of those efforts, Saudi Arabia’s Public Investment Fund, its sovereign wealth fund, announced the establishment of AI startup Humain on Monday to position the country as a “globally competitive AI hub.” Deals with Nvidia, AMD, Qualcomm AI chip designer Nvidia, the market leader, announced a strategic partnership on Tuesday with Humain to build “AI factories” in the country with a projected capacity of up to 500 megawatts. To power those facilities, Nvidia will sell several hundred thousand of its most advanced graphic processing units there over the next five years, beginning with 18,000 of its top-of-the-line GB300 Grace Blackwell chips. “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. Like Nvidia’s Huang, AMD’s chief Lisa Su was also in Riyadh. Her company unveiled a $10 billion deal with Humain to build AI infrastructure, while San Diego-based Qualcomm said it had separately signed an agreement with the AI startup to deliver advanced AI data centers. Keith Strier, senior vice president of global AI markets at AMD, told Reuters that Humain didn’t want to be locked into using a single vendor for AI-related hardware. After Saudi Arabia, Trump is due to fly to neighboring Qatar and lastly to the United Arab Emirates, which has tech ambitions of its own. In 2017, it appointed the world’s first minister dedicated to AI. In April 2024, Microsoft announced a $1.5 billion investment in G42, an AI group based in Abu Dhabi, capital of UAE, and chaired by an influential member of the ruling royal family. The New York Times reported on Monday that the Trump administration was considering a deal that could see the sale of hundreds of thousands of US AI chips to G42. Last year, a US congressional committee called on the Commerce Department to investigate G42’s alleged links to Chinese military companies and intelligence services (G42 denied any such connections). The Microsoft investment required G42 to cut ties with Chinese hardware suppliers, reportedly including Huawei, in favor of US companies.
On Middle East tour, Trump touts US tech to power post-oil future
TruthLens AI Suggested Headline:
"Trump Promotes U.S. AI Technology in Saudi Arabia During Middle East Tour"
CNN
7.5
TruthLens AI Summary
During his first international trip of his second term, U.S. President Donald Trump visited Saudi Arabia accompanied by a delegation of nearly thirty major American CEOs, including leaders from prominent tech companies. This trip marked a significant shift in U.S.-Saudi relations, especially following the controversial tenure of former President Joe Biden, who had previously labeled the kingdom a 'pariah' due to its involvement in the murder of journalist Jamal Khashoggi. Trump’s administration is emphasizing the importance of artificial intelligence (AI) technology as a cornerstone for fostering economic partnerships in the Middle East. The visit resulted in approximately $600 billion worth of deals, primarily focusing on AI chips that are essential for Saudi Arabia's ambitious tech infrastructure projects aimed at reducing its dependency on oil. Trump is leveraging these agreements to position himself as a skilled negotiator while strengthening ties with Gulf nations, particularly Saudi Arabia.
The agreements signed during the trip include significant partnerships with major AI firms, such as Nvidia, AMD, and Qualcomm, which will contribute to the establishment of AI-focused infrastructure in the kingdom. Notably, Nvidia announced plans to build AI factories in Saudi Arabia with a projected capacity of up to 500 megawatts, starting with the sale of advanced graphic processing units. The kingdom is investing heavily in 'giga-projects' as part of its Vision 2030 initiative, which seeks to modernize its economy. Additionally, the Saudi Public Investment Fund is launching an AI startup named Humain, which aims to position the country as a competitive player in the global AI market. Following his visit to Saudi Arabia, Trump is scheduled to continue his tour in Qatar and the United Arab Emirates, both of which have their own aspirations for technological advancement and AI development. This trip not only highlights a significant policy pivot but also underscores America's strategic interests in the evolving economic landscape of the Middle East.
TruthLens AI Analysis
The article highlights President Donald Trump's recent visit to Saudi Arabia, marking a significant diplomatic effort aimed at strengthening U.S.-Saudi relations through technology deals. The trip is portrayed as an opportunity for Trump to showcase American advancements in artificial intelligence, particularly AI chips, which are touted as essential for the region's transition to a post-oil economy.
Strategic Diplomatic Messaging
The visit serves a dual purpose: reinforcing Trump's image as a skilled dealmaker and countering the previous administration's stance towards Saudi Arabia, especially regarding human rights issues linked to the Khashoggi case. By aligning with major tech figures and securing substantial deals, Trump is attempting to shift the narrative around U.S.-Saudi relations towards economic collaboration and innovation. This approach is likely intended to appeal to both domestic audiences who favor economic growth and international stakeholders interested in technological advancements.
Public Sentiment and Hidden Agendas
The emphasis on AI technology and economic partnerships may obscure ongoing geopolitical tensions and previous controversies surrounding Saudi Arabia's human rights record. By focusing on “historic” and “transformative” agreements, the article could downplay criticisms of the Saudi regime, aiming to foster a more favorable public perception of U.S. engagement in the region. There is a potential risk of glossing over the complexities of the relationship, which includes contentious past events and current political dynamics.
Comparative Context
In comparison to other narratives surrounding U.S.-Saudi relations, this article positions Trump's administration as proactive and forward-thinking, contrasting sharply with Biden's more cautious approach. It could be seen as part of a broader attempt to highlight the benefits of strong U.S. ties with Gulf nations while mitigating concerns about authoritarianism.
Market Impact Considerations
This news may impact market sentiment, particularly in tech stocks associated with AI and chip manufacturing. Companies like Nvidia and IBM could see increased investor interest due to their roles in the agreements. Furthermore, the announcement of rescinding Biden-era restrictions could lead to a surge in AI-related stocks as international markets react to the potential for increased sales to Saudi Arabia and other Gulf nations.
Geopolitical Implications
The developments outlined in the article have significant implications for the global balance of power, particularly in the context of U.S.-China competition in technology. By enhancing ties with Saudi Arabia, the U.S. may bolster its influence in the Middle East, which could have ripple effects on international relations, especially in the energy and technology sectors.
AI Influence in Reporting
The writing style may reflect the influence of AI in news reporting, potentially in the form of automated content generation that emphasizes key themes like innovation and partnership. While it's difficult to pinpoint specific AI models, the narrative's focus on transformative technology suggests a trend towards framing technology as a solution to geopolitical challenges.
In conclusion, while the article presents a favorable view of U.S. efforts to engage with Saudi Arabia through technology, it may intentionally or unintentionally obscure deeper issues within this relationship. The portrayal aims to foster a perception of proactive leadership and economic opportunity, which can influence public opinion and market dynamics.