Nvidia Shares Skyrocket After Trump-Backed US‑Saudi AI Pact
Nvidia Surges on AI Investments Tied to Trump‑Saudi Deal
Background
A series of artificial‑intelligence contracts signed during former President Donald Trump’s tenure has stirred a notable uptick in Nvidia’s share price, as the company stands to benefit from the expanded collaboration between the United States and Saudi Arabia.
Key Points of the Agreement
- Over two billion dollars allocated to AI technology projects.
- Projects span data centers, cloud computing, and autonomous systems.
- Involvement of Saudi Crown Prince Mohammed bin Salman and U.S. government officials.
Impact on Nvidia’s Valuation
The influx of capital and the heightened demand for advanced AI hardware have propelled Nvidia’s market value, positioning the firm as a central player in the rapidly evolving AI sector.
Broader Implications
Beyond the immediate financial boost, the deal underscores a strategic alliance that could reshape the geopolitical landscape of technology investment, driving further innovation and competition on a global scale.
Nvidia Shares Surge on New US‑Saudi AI Deal
On Tuesday, Nvidia’s stock leapt 5.6% following the unveiling of a massive AI investment agreement between the United States and Saudi Arabia. The announcement comes as the chipmaker continues to face a 4.5% year‑to‑date decline in a market dampened by US‑China trade frictions and the emergence of China’s cost‑effective DeepSeek AI platform.
Key Players in the US‑Saudi Visit
- Jensen Huang – Nvidia CEO
- Elon Musk – Tesla CEO
- Sam Altman – OpenAI CEO
- Lisa Su – AMD CEO
- Alex Karp – Palantir CEO
These executives joined President Trump on his trip to Saudi Arabia, where the two countries announced a comprehensive partnership.
Investment Highlights
- Saudi Arabia commits $600 billion to U.S. investment over the next decade.
- Includes a $142 billion defense sales agreement.
- $80 billion earmarked for advanced technological collaboration in AI, energy, aerospace, and sports.
Political Implications
Trump announced the lifting of all sanctions on Syria during this visit, signaling a shift toward warmer ties with key Middle East nations. He plans to meet leaders from Qatar and the United Arab Emirates later in the week.
The Middle East AI deals
Vision 2030’s AI Leap: Nvidia’s Bold Partnership with Saudi Arabia
Nvidia has announced a landmark collaboration with HUMAIN—a new AI‑focused subsidiary of Saudi Arabia’s Public Investment Fund (PIF). This alliance marks a decisive step toward turning the Kingdom of Saudi Arabia (KSA) into a leading hub for artificial intelligence, cloud services, digital twins, and robotics.
High‑Performance Chips and Supercomputing Power
Over a five‑year span, Nvidia will supply cutting‑edge AI processors, including:
- 18,000 GB200 Grace Blackwell supercomputing units, each paired with InfiniBand networking, delivered in the first deployment cycle.
- Up to 5,000 Blackwell GPUs for the Saudi Data & AI Authority (SDAIA) to bolster a sovereign AI factory and support smart‑city initiatives.
The procurement is a core element of HUMAIN’s ambitious plan to build advanced AI manufacturing plants, targeting a massive 500‑megawatt operational capacity.
Alliances Across the Tech Landscape
In addition to the primary Nvidia deal, Aramco Digital—the technology wing of the oil giant Saudi Aramco—will join forces with Nvidia to lay the groundwork for country‑wide AI infrastructure.
Economic Diversification and Investment Goals
Saudi Arabia, still heavily reliant on oil exports, aims to shift its economy toward high‑tech industries. Under its Vision 2030 strategy, the kingdom seeks to attract roughly $100 billion in foreign direct investment every year.
US Policy Landscape
Bloomberg reports that the Trump administration is exploring a potential arrangement with the United Arab Emirates that would allow a transfer of over one million advanced Nvidia chips—well beyond the export limits set by the Biden administration.
Other Tech Giants’ Moves
During the same event, major U.S. technology companies—including AMD, Global AI, Amazon, Cisco, and OpenAI—unveiled new AI investment initiatives targeting the Saudi market.
The US scraps Biden’s AI diffusion rule
Trump’s Middle East Visit to Boost US AI Chip Industry
Shifting Export Policies
As President Trump tours the Middle East, he announces a reversal of the AI diffusion rule that was set to come into force on May 15. The change is part of a broader effort to lift restrictions on the sale of AI chips to China.
Background
- During the last month of President Biden’s term, tighter limits were placed on exporting AI chips to China, citing concerns that the country could acquire U.S. technology through intermediate nations.
- These new controls extended to a range of countries, including Saudi Arabia and the United Arab Emirates.
Current Action
Right on the day of the Middle East trip, the U.S. Department of Commerce (DOC) declared the cancellation of the AI diffusion rule, effectively repealing the restrictions imposed under the previous administration. The Bureau of Industry and Security (BIS) also issued updated guidance aimed at strengthening controls on overseas exports of AI chips.
Implications
The DOC stated that the Trump administration will pursue a “bold, inclusive strategy” to advance American AI technology with trusted partners while safeguarding against adversarial use. It positioned the new policy as an alternative to what it described as “ill‑conceived” and counter‑productive measures introduced by the former administration.
