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Trillion-Dollar Deal: New AI Alliance Between the USA and Saudi Arabia
Trillion-Dollar Deal: New AI Alliance Between the USA and Saudi Arabia
American technology firms have reached an agreement with the Saudi Arabian company Humain for large-scale development of artificial intelligence in the region. The initiative is accompanied by President Donald Trump's visit to the country.
Nvidia
Nvidia will sell more than 18,000 of its latest AI chips to Humain. This was stated by the CEO of the American chipmaker Jensen Huang during a trip to the region, which was attended by Trump and leaders of other companies.
The advanced Blackwell chips will be used in data centers with a total capacity of 500 MW in Saudi Arabia. Nvidia announced the delivery of GB300 Blackwell — one of the company's most advanced chips.
Humain belongs to the sovereign wealth fund of Saudi Arabia. The company will focus on developing AI models and infrastructure for data centers. The firm plans to "launch several hundred thousand Nvidia graphics processors".
Amazon
Amazon announced a collaboration with Humain to create a "revolutionary AI zone" to accelerate the adoption of technology in Saudi Arabia and around the world. The partnership includes over $5 billion in investments in the sector.
Amazon has committed to providing the country with its advanced capabilities in server and network infrastructure, artificial intelligence and machine learning services, including Amazon SageMaker AI, Amazon Bedrock, and Amazon Q.
As part of the collaboration, Humain intends to develop AI solutions using Amazon Web Services technology for end clients. The firms will also create a unified market for AI agents.
AMD
AMD is yet another American chipmaker that Humain has teamed up with to create AI infrastructure over the next five years. The agreement involves investments of $10 billion.
Humain will monitor the development of data centers, resilient energy systems, and global fiber optic connections, while AMD will provide chips and software. As part of the project, data centers will be created, "stretching from the Kingdom of Saudi Arabia to the United States."
Global AI
Nvidia, Amazon, and AMD partnerships are not coming to an end. The American technology company Global AI intends to collaborate with Humain, writes Bloomberg.
According to media reports, the deal is valued in the billions of dollars.
Global AI is building a data center in New York that will use Nvidia chips. It offers AI infrastructure for private companies and sovereign states.
As part of the partnership, Humain will gain access to Global AI's data centers in the USA.
Expansion of Cooperation
Trump's arrival in Riyadh is associated with attracting foreign investments to the country. The trip includes stops in Qatar and the United Arab Emirates.
According to Bloomberg, the Trump administration is preparing to announce a deal that will provide Saudi Arabia with broader access to advanced semiconductors and pave the way for increased data center capacities in the Gulf country. This policy does not quell the concerns of some American officials regarding its ties to China.
The governments of the two countries reached an agreement at an early stage, but they still need to work out a number of key details. First of all, the United States is concerned that China may gain access to the chips being sent to Saudi Arabia.
Since 2023, Washington requires companies to obtain a license to sell AI processors in the UAE, Saudi Arabia, and other countries in the Middle East, largely due to concerns that the equipment could fall under Beijing's control.
Last year, the Biden administration discussed possible options for limiting supplies that would help protect American technologies from China, while not deterring third countries from equipment.
Legislative Regulation
In early May, it became known about the preparation of a bill that requires American chipmakers to verify the location of AI chips after their sale. The efforts are aimed at combating the smuggling of processors to China in violation of export control regulations.
The technology for verifying the location of chips is based on their connection to a secure computer server. The system will use the time it takes for the signal to reach the center. This approach will allow for determining the processor's location at the country level.
Later, Senator Tom Cotton from Arkansas introduced the corresponding legislative measure. If adopted, geo-tracking features will be mandatory, including for high-performance graphics cards.
Recall that in January, Donald Trump announced private sector investments totaling $500 billion in artificial intelligence infrastructure.