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.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...