A recent tour of Gulf states by former President Donald Trump has resulted in significant commitments from Saudi Arabia to American technology firms, particularly in the field of artificial intelligence (AI). The tour has led to over $600 billion in agreements, with major players like Nvidia and Cisco securing lucrative contracts to bolster AI development in the region.
Key Takeaways
- Trump’s Gulf tour resulted in $600 billion in commitments from Saudi Arabia to US tech firms.
- Nvidia will supply 18,000 AI chips to Saudi Arabia’s Humain startup.
- Cisco has partnered with UAE’s G42 to enhance the country’s AI sector.
- Saudi Arabia aims to become a global AI hub, reducing its reliance on oil revenue.
- DataVolt will invest $20 billion in AI infrastructure in the US.
Major Deals Announced
During the tour, several key agreements were highlighted:
- Nvidia: The company will provide hundreds of thousands of AI chips to Saudi Arabia, starting with an initial shipment of 18,000 of its latest “Blackwell” chips to Humain, a new AI startup backed by the Saudi sovereign wealth fund.
- Cisco: The tech giant announced a partnership with G42, an AI firm based in the UAE, to develop the country’s AI capabilities and explore cybersecurity technologies utilizing US AI advancements.
- Investment Commitments: The White House revealed that Saudi firm DataVolt will invest $20 billion in AI data centers and energy infrastructure in the US. Additionally, a consortium of companies including Google, Oracle, and Uber will invest $80 billion in transformative technologies across both nations.
Saudi Arabia’s AI Ambitions
Saudi Arabia is actively seeking to diversify its economy away from oil dependency. The recent launch of Humain, announced by Crown Prince Mohammed bin Salman, aims to position the kingdom as a leader in AI technology. The partnership with Nvidia is expected to leverage advanced GPU cloud computing and digital transformation initiatives, establishing Saudi Arabia as a significant player in the global AI landscape.
Strategic Positioning in Global AI Market
Trump’s negotiations have been bolstered by the US’s control over advanced semiconductor technology, which is crucial for AI development. This strategic advantage allows the US to foster partnerships with Gulf states while maintaining strict export controls on AI technology to rival nations like China.
The contrast between the US’s open dealings with Saudi Arabia and its restrictions on China highlights the geopolitical dynamics at play in the tech industry. While Nvidia faces limitations in selling its latest models to Chinese firms, the company is poised to expand its influence in the Middle East.
Conclusion
The agreements forged during Trump’s Gulf tour signify a pivotal moment for US tech firms as they expand their footprint in the Middle East’s burgeoning AI sector. With substantial investments and partnerships, both the US and Gulf states are set to benefit from advancements in AI technology, potentially reshaping the global tech landscape in the years to come.
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