The relationship between the United States and Middle East is entering a transformative phase, driven by advancements in technology, artificial intelligence (AI), and significant investment pledges

In a series of landmark agreements announced during Trump’s visit to the Middle East, leading U.S. technology firms have unveiled significant partnerships aimed at bolstering artificial intelligence infrastructure in Saudi Arabia.

These deals signify a strategic shift in U.S. foreign policy, emphasizing economic collaboration and technological advancement in the region.

Nvidia and AMD Power Saudi Arabia and UAE’s AI Ambitions

The US tech giants nvidia Corp. and advanced micro devices Inc. (AMD) are at the forefront of a pivotal initiative to supply semiconductors to Saudi Arabia for AI-driven data centers.

Nvidia has partnered with Humain, a Saudi AI company owned by the kingdom’s Public Investment Fund (PIF), to deliver cutting-edge chips for a massive data center project. Announced by Nvidia CEO Jensen Huang at the Saudi-US Investment Forum in Riyadh during President Donald Trump’s visit, this deal leverages Saudi Arabia’s energy wealth to power AI innovation. The project includes deploying “several hundred thousand” of Nvidia’s advanced GB300 Grace Blackwell processors over the next five years, starting with 18,000 units, to build “AI factories” with a capacity of up to 500 megawatts.

AMD is also contributing, providing chips and software for a $10 billion data center project spanning Saudi Arabia and the US. This move aligns with both companies’ strategies to diversify their customer base for AI accelerators, reducing reliance on dominant players like Microsoft and Amazon. The announcement boosted Nvidia shares by 5.6%, surging back above 3.1 trillion in market value, and amd shares by 4.01% in New York trading, reflecting investor confidence in this expansion.

Simultaneously, the Trump administration is negotiating a landmark deal to allow the United Arab Emirates (UAE) to import over a million Nvidia chips, far exceeding Biden-era restrictions. This deal, still fluid, could permit the UAE to acquire 500,000 advanced chips annually through 2027, with 20% allocated to Abu Dhabi’s AI firm G42 and the rest to US firms building data centers in the Gulf. This shift raises concerns about potential technology leakage to China but signals a bold US policy pivot to bolster Middle Eastern AI capabilities, potentially reshaping the region’s role in the global tech landscape.

These developments highlight the Middle East’s growing significance as a tech hub, driven by sovereign AI initiatives and local data storage mandates. Saudi Arabia’s requirement for personal and financial data to remain in-country has already attracted $10 billion in data center investments from Amazon, alongside expansion plans from Google and Oracle.

Trump and MBS Announce $1 Trillion Investment Pledge

At the same Saudi-US Investment Forum, President Trump and Saudi Crown Prince Mohammed bin Salman (MBS) announced a $1 trillion pledge in commercial deals, framing it as a cornerstone of a “golden age” for the Middle East. Trump emphasized the speed of this achievement, contrasting it with past administrations, while MBS signaled intent to ramp up Saudi investments in the US. However, the figure’s credibility is clouded by discrepancies: conference signage cited a $300 billion total, while the White House referenced $600 billion—both well below the $1 trillion headline.

Despite the ambiguity, the pledge includes tangible commitments. Defense sales worth nearly $142 billion will equip Saudi Arabia with advanced US military technology, while Saudi firms plan to purchase $14.2 billion in GE Vernova gas turbines and $4.8 billion in Boeing 737-8 aircraft. Tech investments are also significant, with Google, Oracle, AMD, Uber, and Saudi-based DataVolt committing $80 billion to transformative technologies, including $20 billion from DataVolt for AI data centers and energy infrastructure in the US.

This pledge aligns with Trump’s transactional economic approach, leveraging Gulf sovereign wealth to boost US industries like aerospace, energy, and healthcare. For Saudi Arabia, hosting Trump offers a chance to attract foreign capital critical for its Vision 2030 diversification goals, though its $20.7 billion in foreign direct investment last year falls short of the $100 billion annual target by 2030. With crude oil prices at $62 per barrel—far below the $96 needed to balance its budget—the kingdom faces financial pressure, making these US partnerships vital.

OpenAI Weighs UAE Data Center Deal as Trump Set to Visit

Adding to the tech momentum, OpenAI is exploring a data center expansion in the UAE, potentially announcing the deal during Trump’s visit. This move builds on OpenAI’s existing ties with the UAE, including a 2023 partnership with G42 and investments from Microsoft and MGX, an Emirati fund tied to the royal family. The project’s scale remains unclear, but its success depends on securing Nvidia chips currently restricted by US export rules—a hurdle the Trump administration appears poised to address.

This potential deal reflects a broader trend of US tech firms eyeing Middle Eastern investment amid Trump’s push to ease semiconductor export limits. However, it also raises national security questions, given past UAE ties to China’s Huawei and the risk of advanced technology reaching Beijing.

The convergence of these initiatives—chip supplies to Saudi Arabia, a potential UAE deal, the $1 trillion pledge, and OpenAI’s UAE ambitions—marks a significant realignment in US-Middle East relations.

For investors, the rally in Nvidia and AMD shares signals market optimism, though uncertainties around the $1 trillion figure and security risks temper the outlook. For the Middle East, these moves position the region as a burgeoning tech powerhouse, albeit one navigating complex geopolitical and economic challenges. As details solidify, the financial world will watch closely to see if this ambitious vision matches its rhetoric.