Trump’s Visit to Saudi Arabia Brings $600 Billion in AI Deals and Changes U.S. Tech Rules

Talking about AI Trade Deals. Former President Donald Trump recently traveled to Saudi Arabia, and the visit led to huge news. The United States and Saudi Arabia agreed to work together on over $600 billion worth of deals. A big part of this is focused on artificial intelligence, or AI. One major highlight is that the American tech company Nvidia will help a Saudi company called Humain build new AI systems using powerful U.S. computer chips. This became possible because the U.S. government changed its rules and now allows more AI tech to be shared with trusted countries. This move is also meant to compete with China in the growing global tech race.

In the past, the United States was very careful when it comes to sell this advanced AI chips. A small pieces of technology (AI Chips) is really powerful to help run smart machines and software. The U.S didn’t want some countries, especially China, to get access to them through other regions like the Middle East. So, the Biden administration made a rule called the “diffusion rule” to prevent sale of AI Chips from some countries.

Now, the Trump administration has changed that rule. Friendly countries like Saudi Arabia are now allowed to buy U.S. AI chips. At the same time, the U.S. is warning companies not to use chips made by China’s Huawei brand, even outside of China. The idea is to make sure U.S. technology stays ahead and remains strong in global markets.

AI Trade Deals Details

🧠 U.S. and Saudi Arabia Team Up on AI:

• Nvidia will work with the Saudi company Humain to build new AI centers using American-made computer chips.
• This plan was only possible because the U.S. changed its rules to allow these kinds of tech deals.
• The U.S. hopes that giving its allies better AI tools will help stop China from becoming too powerful in this field.

📈 Nvidia’s Stock and CEO’s Wealth Jump:

• After the news, Nvidia’s stock price went up more than 6%.
• The company’s CEO, Jensen Huang, saw his personal wealth grow to about $120 billion, a big increase from $80 billion the year before.

💰 Big Investment Promises:

• Saudi Arabia plans to invest $600 billion into the U.S., focusing on AI, clean energy, and new technologies.
• A Saudi company called DataVolt will spend $20 billion building AI data centers in the U.S.
• Other American companies like Google, Oracle, AMD, Salesforce, and Uber will work with Gulf countries on AI and tech projects worth $80 billion.

📢 What U.S. Officials Are Saying:

• The U.S. Commerce Department says it wants to help allies get strong AI tools while keeping them away from China.
• Trump’s plan is to build stronger partnerships with friendly countries instead of cutting them off from U.S. technology.

Analysis & Impact

🚀 How This Affects Tech Companies:
These deals are a big win for U.S. tech companies. With help from Saudi Arabia and its neighbors, American companies can sell more products and build more systems overseas. That means more AI machines and apps will use U.S. technology instead of China’s.

Smaller companies and developers can also benefit. With new buildings and equipment being added in the Gulf region, it will be easier for more people to build and test new AI ideas. That could lead to faster progress in things like health care, transportation, and smart cities.

⚠️ Possible Problems:
There are still some risks. One problem is making sure the new rules are followed. If U.S. chips are shared with countries that shouldn’t have them, it could be dangerous.

Some people also worry about giving powerful AI tools to Saudi Arabia, a country that has been criticized for how it handles privacy and human rights. AI could be used in ways that aren’t fair or safe if not watched carefully.

Also, this new strategy could make tensions grow between countries that support the U.S. and those that support China. There might be arguments about who controls AI and how it should be used around the world.

Even so, supporters believe that working with friendly countries is better than shutting them out. They say it’s a smarter way to stay ahead and build a better, safer future for AI.

Resources & References:

• Reuters – “Trump’s Saudi Victory Lap Belies AI Fears”
• Reuters – “U.S. Can Curb AI Chip Risks Without Halting Tech Exports”
• Reuters – “Nvidia CEO’s Net Worth Nears $120 Billion After Saudi Deal”
• Bloomberg – “Trump Faces $2 Trillion Hurdle to Win Money From Saudi Prince”
• CNN – “Trump’s Middle East trip: President plans to lift Syria sanctions as he touts Saudi Arabia deals”

Trump’s visit to Saudi Arabia wasn’t just about politics—it brought major changes to how the U.S. works with other countries in AI and technology. With huge investments and new partnerships, this moment could help shape the future of global technology.

Do you think sharing AI technology with allies is a good idea? Can it really help the U.S. stay ahead of China? Let us know in the comments, and follow AI Brief Now for more updates on the latest in tech, AI, and international news!