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Saudi Arabia buys $500M in US chips after Trump visit
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The Trump administration‘s Gulf chip diplomacy marks a significant shift in US semiconductor export policy, granting Saudi Arabia and potentially other Gulf nations access to advanced AI chips despite previous restrictions. These multi-billion dollar deals signal America’s evolving approach to balancing economic opportunities against national security concerns in the strategically important semiconductor sector, with Gulf nations eager to build AI capabilities for their economic diversification plans.

The big picture: Saudi Arabia has secured access to cutting-edge US AI chips through multi-billion dollar agreements with Nvidia and AMD as President Trump visits the Gulf region to negotiate further semiconductor deals.

  • Nvidia will supply its most advanced AI chips to Saudi Arabia’s HUMAIN and train thousands of local developers as part of the kingdom’s AI talent development initiative.
  • AMD has entered a $10 billion joint venture with HUMAIN to provide chips and software for data centers in both Saudi Arabia and the United States.
  • Amazon Web Services is partnering with Riyadh on a $5+ billion investment to develop agentic AI solutions for Saudi government use.

Why this matters: These deals represent a significant policy reversal from the Biden administration’s chip export restrictions, with Trump’s team opting for country-by-country negotiations instead of broad controls.

  • Trump’s AI czar announced in Riyadh that the administration will “rescind” Biden-era chip caps that limited advanced semiconductor exports.
  • The agreements support Saudi Crown Prince Mohammed bin Salman’s diversification strategy while opening lucrative markets for US technology companies.

The counterpoint: Security concerns persist about providing Gulf nations unrestricted access to cutting-edge AI technology.

  • A former Biden administration senior policy adviser warned in Foreign Policy about the “very real” risk of sensitive intellectual property potentially leaking to US adversaries.

What’s next: The semiconductor diplomacy tour continues as Trump travels to Qatar and Abu Dhabi, with reports suggesting Nvidia may announce another major chip deal in Abu Dhabi.

Saudi Arabia snaps up US chips following Trump’s visit

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