AI Investments Strengthen Ties Between American Tech Firms and Middle Eastern Allies

AI investments are emerging as a pivotal force in enhancing relationships between American technology companies and partners in the Middle East. This development aligns with US President Donald Trump’s broader strategy to improve economic relations during his recent trip to the Gulf.

According to Reuters, commitments amounting to $600 billion have been secured from Saudi Arabia to US firms, featuring notable announcements from giants such as Nvidia, AMD, and Qualcomm. These actions reflect the Trump administration’s emphasis on establishing US-led technology collaborations as a cornerstone of its foreign policy in the region.

Humain: A Key Player in AI Advancement

At the forefront of these advancements is Humain, an innovative AI startup supported by Saudi Arabia’s sovereign wealth fund. Nvidia plans to supply hundreds of thousands of its advanced AI chips to Humain over a five-year period, starting with an initial shipment of 18,000 Grace Blackwell (GB300) processors. Humain and Nvidia aim to develop “AI factories” in Saudi Arabia, boasting up to 500 megawatts of GPU computing power, with the ambition of transforming the kingdom into a global hub for AI and digital change.

Collaborations With Major Companies

In a competitive landscape, AMD, Nvidia’s primary rival in AI accelerators, announced a significant $10 billion partnership with Humain. As highlighted by Reuters, this collaboration encompasses hardware infrastructure, software assistance, and deployment of data centres throughout both Saudi Arabia and the US. Keith Strier, AMD’s Senior Vice President for Global AI Markets, commented that this agreement guarantees Humain’s independence from a single vendor, which underscores the kingdom’s dedication to establishing a robust and diverse AI ecosystem.

A separate announcement from Bloomberg noted that Global AI, a venture based in the US, plans to construct a data centre in New York using Nvidia chips, in partnership with Humain. Furthermore, Amazon and Humain are set to jointly invest over $5 billion to create an “AI Zone” in Saudi Arabia, leveraging AWS cloud technologies to enhance government services and develop a marketplace of AI agents. AWS had previously allocated $5.3 billion for the development of cloud infrastructure in the kingdom.

Cisco and Other Players Join the AI Initiative

Cisco Systems has also engaged in this momentum, stating it will integrate its global expertise with Saudi Arabia’s ambitions in AI, while extending its collaboration with Abu Dhabi-based G42. Concurrently, STV, a Saudi venture capital firm backed by Alphabet, has launched a $100 million AI fund focused on supporting early-stage startups in the MENA region.

The facilitation of these agreements by the Trump administration involves overturning the AI diffusion rule established during the Biden administration, which had imposed extensive restrictions on chip exports. According to Bloomberg, the current administration is shifting towards country-specific negotiations, enabling trusted partners like Saudi Arabia and the UAE to obtain top-tier AI chips from Nvidia and AMD.

Future Prospects for AI Technologies

An anticipated agreement is likely to permit the UAE to import 500,000 of Nvidia’s most advanced chips annually until 2027, a figure that significantly exceeds previous export limits. It is expected that one-fifth of these chips will be designated for G42, whilst the remainder will support US-led data centre initiatives in the UAE.

Additionally, OpenAI is reportedly considering the establishment of a major data centre presence in the UAE, potentially broadening its influence in the region. CEO Sam Altman is currently touring the Gulf, part of a wider initiative by leaders in the US tech industry.