The Trump administration is facilitating expanded artificial intelligence (AI) collaboration between the United States and key Persian Gulf allies — Saudi Arabia and the United Arab Emirates (UAE). As part of a new policy shift, both nations are poised to gain access to advanced AI chips from Nvidia and AMD, chips considered critical for developing and deploying cutting-edge AI models. These developments align with President Trump’s visit to the Middle East, where he aims to deepen business ties, particularly in the technology sector.
In anticipation of formal agreements, major US technology companies are already committing billions of dollars in investments. Nvidia plans to supply hundreds of thousands of its premier GB300 Grace Blackwell chips to Saudi Arabia’s AI company Humain. Meanwhile, AMD has entered a $10 billion partnership to deliver AI infrastructure across Saudi Arabia and the US. Other American ventures, such as Global AI, are also collaborating with Humain to build US-based data centers powered by Nvidia chips.
Tech Giants Expand in Gulf as US Considers Loosening AI Chip Export Limits
Amazon and Humain have announced a $5 billion investment to establish an “AI zone” in Saudi Arabia, utilizing Amazon Web Services to develop a marketplace of AI agents for government use. Cisco Systems is also engaging with Humain and UAE-based firm G42 to support regional AI infrastructure. In parallel, Saudi venture capital firm STV, with support from Google, launched a $100 million fund to back early-stage AI startups across the Middle East and North Africa.
Trump Pushes AI Diplomacy with Saudi Arabia and UAE as Tech Giants Pour Billions into Gulf ExpansionThe Trump administration is weighing a deal allowing the UAE to import over a million Nvidia chips, exceeding restrictions imposed during the Biden administration. Under the tentative agreement, 500,000 advanced AI chips could be shipped annually until 2027. Concerns have been raised that these chips might indirectly benefit China, particularly given G42’s alleged ties to Huawei. The proposal has sparked caution among Washington lawmakers who advocate for strict safeguards.
OpenAI Eyes UAE Expansion as Trump Shifts AI Policy Toward Strategic Bilateral Deals
OpenAI is reportedly exploring new data center development in the UAE, signaling its growing interest in the Gulf region. While plans are still under discussion, the move would significantly increase OpenAI’s presence and capacity in the Middle East. CEO Sam Altman is currently on a regional tour that aligns with Trump’s visit, suggesting potential announcements may soon follow. These developments mark a broader trend of American AI firms aligning themselves with Gulf ambitions.
To support this wave of AI diplomacy, the Trump administration has formally moved to rescind the AI diffusion rule put in place by President Biden, which limited AI chip access based on a tiered country system. The new approach will rely on individual bilateral deals, granting more flexibility to close allies. While this shift is welcomed by US tech giants, it faces opposition from lawmakers concerned about national security risks, especially regarding potential Chinese access to sensitive hardware via third countries.
