Today's Edition
(BLOOMBERG)
The Trump administration is clearing a path for Saudi Arabi and the UAE to pursue their artificial intelligence ambitions - and some of the biggest US tech companies are seizing on that opening with plans to spend billions of dollars in the region.
Under agreements with the US expected to be unveiled in coming days, Saudi Arabia and the United Arab Emirates are poised to win wider access to advanced AI chips from Nvidia Corp. and Advanced Micro Devices Inc., which are considered the gold standard for running AI models.
Technology shares rose broadly in anticipation of eased restrictions on exports of advanced AI chips. Nvidia climbed 5.6% while AMD surged 4% on Tuesday, and both companies extended those gains in Wednesday trading.
Shares of Super Micro Computer Inc. jumped nearly 20% after markets opened in New York on Wednesday before paring some gains.
The deals are taking shape while President Donald Trump visits the Middle East seeking to forge deeper business ties that put US technology initiatives at center stage. Even before any formal announcement of agreements between the US and its partners, news began to emerge of American companies readying expanded projects in the region.
Nvidia, the world's biggest semiconductor maker, will supply its most advanced artificial intelligence-related chips to Saudi Arabia's Humain, a company created to push that country's AI infrastructure efforts. Humain will get “several hundred thousand” of Nvidia’s most advanced processors over the next five years, starting with 18,000 of its cutting-edge GB300 Grace Blackwell products and its InfiniBand networking technology.
AMD, Nvidia's closest rival in AI accelerators, will provide chips and software for data centers "stretching from the Kingdom of Saudi Arabia to the United States" in a $10 billion project, Humain and AMD said.
Global AI, a US tech venture, also plans to collaborate with Humain, in an agreement expected to be worth billions of dollars, according to a person familiar with the matter. Founded by US tech industry veterans, Global AI intends to build a data center in New York that will rely on chips developed by Nvidia, with plans for more centers.
Amazon.com Inc. And Humain said they would invest more than $5 billion to build an “AI zone” in Saudi Arabia. Among other projects, Humain will use technologies from the Amazon Web Services cloud unit to develop a marketplace of AI agents for use by Saudi Arabia's government. AWS announced last year that it would open a cluster of data centers in Saudi Arabia, part of a $5.3 billion investment in the country.
Cisco Systems Inc., the world's largest provider of networking gear, is working with Humain as well. The company said it would combine its “global expertise with the kingdom’s bold AI ambitions” to build infrastructure. It also extended a partnership with Abu Dhabi AI firm G42.
Super Micro said Tuesday it had inked a $20 billion deal with Saudi data center company DataVolt for high-powered servers. Super Micro sells data center infrastructure which often contains Nvidia chips and also counts Elon Musk's xAI among its customers.
Saudi Arabian venture capital firm STV launched a $100 million artificial intelligence fund with backing from Alphabet Inc.'s Google. The investments will be focused on early-stage startups in the Middle East and North Africa and support the development of infrastructure, according to a statement. It didn't disclose the amount of capital put up by Google.
Those AI initiatives stood out in a flurry of investments unveiled on the first full day of Trump's visit to the region. In Riyadh, Saudi Arabia's capital, Trump was joined by Crown Prince Mohammed bin Salman in hailing closer commercial relations. The deals also have included expanded purchases of Boeing Co. passenger jets and a promise by the Kingdom to allow Elon Musk's Starlink service to be used in aviation and maritime shipping.
To pave the way on artificial intelligence, the US moved formally Tuesday to rescind the so-called AI diffusion rule launched under President Joe Biden. The measure, which created three broad tiers of access for countries seeking AI chips, had faced intense opposition from companies like Nvidia and American allies over the constraints it placed on countries' chip purchases. Trump administration officials are now drafting their own approach that is expected to shift toward negotiating individual deals with countries.
