US President Donald Trump’s recent whirlwind visit to the Middle East has triggered a wave of artificial intelligence (AI) dealmaking that could significantly reshape the global technology landscape. During his trip, Saudi Arabia’s Public Investment Fund announced the creation of AI startup Humain, with US companies Nvidia, AMD, and Qualcomm committing to supply chips and partner on AI infrastructure.
Major AI Deals and Partnerships
The Trump administration also announced plans to rescind and replace the “AI Diffusion” rule, a Biden-era regulation that would have capped sales of advanced chips. This move, coupled with the establishment of Humain and other partnerships, marks a significant shift in the global AI competition.
In Abu Dhabi, the US and UAE announced a partnership to build a massive 5-gigawatt data center complex – the largest outside the US. This project alone represents a substantial increase in global data center capacity, which currently stands at approximately 59 gigawatts according to Goldman Sachs.
Global Implications of AI Deals
Experts view these developments as a “game-changer” in the global AI race, potentially cementing American technology as the global standard. David Sacks, Trump’s AI czar, described the deals as such, emphasizing their importance in maintaining US technological superiority over competitors.
The partnerships address a critical challenge facing US AI development: energy requirements for data centers. Mohammed Soliman of the Middle East Institute notes that the US faces significant constraints in powering its data center infrastructure domestically, making cooperation with energy-rich Gulf states strategically important.
Concerns and Future Directions
However, the deals have raised concerns among Democrats about the potential national security risks of advanced chip technology falling into the wrong hands, particularly China. There’s also debate about whether these partnerships will enhance US influence or create future leverage for Gulf governments over US tech companies and foreign policy.
As the Gulf region advances its AI ambitions, experts predict it could emerge as the third major power in the AI competition, potentially challenging the current US-China dominance. While current talent constraints might limit their immediate impact, the region’s growing role in the global AI landscape is becoming increasingly clear.
The deals mark a pivotal moment in US-Gulf relations, shifting the focus from traditional energy resources to computing power and AI technology. As one expert noted, “It’s no longer about crude; it’s mostly about compute.”
