Nvidia stock soars on US-Saudi AI deal backed by Trump, bin Salman
CEO Jensen Huang was among the US tech leaders—alongside Tesla's Elon Musk, OpenAI's Sam Altman, AMD's Lisa Su, Palantir's Alex Karp, and other executives—who accompanied President Trump on his visit to Saudi Arabia. At the investment conference, the White House announced a $600 billion investment pledge by the Middle Eastern kingdom into the US, including a nearly $142 billion defence sales deal, an $80 billion commitment into 'cutting-edge transformative technologies' in both countries, and other agreements across energy, aerospace, and sports sectors.
Trump also vowed to lift all sanctions against Syria during his visit, a political gesture to warm the relationship with key Middle East countries. He is also going to meet leaders of Qatar and the United Arab Emirates (UAE) later this week.
Nvidia announced it will partner with HUMAIN, a subsidiary of Saudi Arabia's Public Investment Fund focused on AI, to transform the Kingdom of Saudi Arabia (KSA) into 'a global powerhouse in AI, cloud and enterprise computing, digital twins and robotics.' Nvidia will supply its most advanced AI chips over the next five years, including 18,000 units of the GB200 Grace Blackwell AI supercomputer with its InfiniBand networking in the initial phase. The purchase forms part of a broader project for HUMAIN to build AI factories in the kingdom, with a projected capacity of up to 500 megawatts.
The announcement also includes a deal with the Saudi Data & AI Authority (SDAIA), which will 'deploy up to 5,000 Blackwell GPUs for a sovereign AI factory and enable smart city solutions.' Aramco Digital, the technology arm of oil giant Saudi Aramco, will also collaborate with Nvidia to develop AI infrastructure in the country.
Saudi Arabia, an oil-rich nation, is seeking to diversify its economy, which still relies heavily on crude exports. The kingdom aims to attract $100 billion in foreign direct investment annually, as outlined under its Vision 2030 strategy.
According to a Bloomberg report, the Trump administration is also considering a deal with the UAE, which would permit the import of over one million advanced Nvidia chips—well above the export limits imposed under the Biden administration.
Other major US tech firms, including AMD, Global AI, Amazon, Cisco, and OpenAI, also announced AI investment plans in Saudi Arabia during the event.
Trump's Middle East trip is shaping up to be a major win for US AI chipmakers, as the president looks to ease export curbs to China. On the same day, the US Department of Commerce (DOC) announced that it is rescinding the AI diffusion rule imposed during former President Joe Biden's administration, which had been due to take effect on 15 May.
Biden's administration had implemented fresh restrictions on AI chip exports to China in January, its final month in office, expanding controls to much of the world, amid concerns that China was accessing US AI chips via third countries. Both Saudi Arabia and the UAE had also been subject to those restrictions.
'The Trump administration will pursue a bold, inclusive strategy to advance American AI technology with trusted foreign partners, while keeping the technology out of the hands of our adversaries. At the same time, we reject the Biden administration's attempt to impose its own ill-conceived and counterproductive AI policies on the American people,' stated the DOC.
The department added that the Bureau of Industry and Security (BIS) issued new guidance to strengthen controls over overseas exports of AI chips to limit China's access to advanced US technologies.
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