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US Tech Firms Secure AI Deals as Trump Tours Gulf States

The Guardian

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Date Published
12 May 2025
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3
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Created
13 May 2025, 06:41 pm

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Nvidia to sell hundreds of thousands of AI chips in Saudi Arabia and Cisco also signs deal with UAE company G42

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The article reveals significant contracts secured by US tech companies during Donald Trump's tour of Gulf states, highlighting major AI deals with Saudi Arabia and the UAE. Nvidia plans to sell vast numbers of AI chips to Humain, a Saudi AI startup, while Cisco partners with UAE's G42 to enhance AI capabilities. These agreements reinforce the strategic ambitions of Gulf nations to become global AI hubs, moving away from oil dependency. The narrative underscores geopolitical dynamics in AI technology trade, reflecting the US's strategic positioning against China by restricting advanced AI chip sales to the latter.

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Donald Trump with Mohammed Bin Salman in Riyadh on Tuesday.Photograph: Brian Snyder/ReutersView image in fullscreenDonald Trump with Mohammed Bin Salman in Riyadh on Tuesday.Photograph: Brian Snyder/ReutersUS tech firms secure AI deals as Trump tours Gulf statesNvidia to sell hundreds of thousands of AI chips in Saudi Arabia and Cisco also signs deal with UAE company G42A swath of US technology firms announced deals in the Middle East as Donald Trump trumpeted$600bn in commitmentsfrom Saudi Arabia to American artificial intelligence companies during a tour of Gulf states.Among the biggest deals was a set signed by Nvidia. The company will sell hundreds of thousands of AI chips inSaudi Arabia, with a first tranche of 18,000 of its newest “Blackwell” chips going to Humain, Saudi Arabia’s sovereign-wealth-fund-owned AI startup, Reuters reported. Cisco on Tuesday said it had signed a deal with G42, the AI firm based in the United Arab Emirates, to help the company develop that country’s AI sector.Trump plans to visit the UAE on Thursday. The New York Times on Monday reported that hisadministrationis nearing a deal to allow UAE to buy large volumes of Nvidia’s AI chips as well.skip past newsletter promotionafter newsletter promotionTrump says he will remove all Syria sanctions and hails $142bn Saudi-US defense sales deal – liveRead moreThe deals will flow both ways. The White House said the Saudi Arabian firm DataVolt will invest $20bn in AI data centers and energy infrastructure in the US. Alphabet’s Google, DataVolt, Oracle, Salesforce, Advanced Micro Devices and Uber will invest $80bn in transformative technologies in both countries, according to the White House, though no further details were available.Cisco said it had reached an agreement with UAE’s G42 “to assess the potential” to work together on cybersecurity technologies that use US AI as well as AI data centre technologies.Saudi Arabia, which is seeking to make its economy less dependent on oil revenue, aims to position itself as a hub for AI and a leading centre for AI activity outside the United States. The pivot is recent: on Monday, Crown Prince Mohammed bin Salman announced the launch of Humain, which will develop and manage AI technologies in Saudi Arabia. The two companies said they would leverage Nvidia’s platforms to establish Saudi Arabia as a global leader in AI, GPU cloud computing and digital transformation.Command over the world’s most advanced semiconductors, vital for cutting-edge AI, has put Trump in a powerful negotiating position as he tours the Middle East. The deals with Saudi Arabia for AI chips stand in stark contrast to the strict restrictions the US has imposed on trading the commodity with China. Nvidia in particular has been prohibited from selling its latest models to Chinese firms, though some have still been able to match American companies’ AI, most notablyDeepSeek.Explore more on these topicsTechnologyDonald TrumpSaudi ArabiaArtificial intelligence (AI)GoogleNvidiaMiddle East and north AfricanewsShareReuse this content