President Donald J. Trump flew over Europe on his way to Saudi Arabia, with some of America’s most powerful business leaders in tow. There, he secured investments and geopolitical influence.
On the first day of Trump’s visit to the Gulf region, the White House announced a $600-billion investment commitment from Saudi Arabia. The deal will build economic ties that “will endure for generations to come,” the White House said.
The two countries signed a $142 billion defense sales agreement, which provided Saudi Arabia with state-of-the-art warfighting equipment and services from US defense firms. Trump secured investment commitments from the US and Saudi private sectors.
Saudi Arabian DataVolt plans to invest $20 billion in US AI data centers and energy infrastructure. Alphabet Inc. (GOOGL), DataVolt, Oracle Corp., Salesforce Inc. (CRM), Advanced Micro Devices Inc., and Uber Technologies Inc. (UBER) have committed to investing $80 billion in cutting-edge transformative technologies in both countries.
“A great day in Saudi Arabia!!!”, Trump said in a post on the White House’s X account.
Trump’s Visits Highlight Region’s Geopolitical Importance
The two-day visit has highlighted the importance of the Middle East for US companies and the country’s broader geopolitical strategy. Trump will visit Qatar and the United Arab Emirates (UAE). He has no stops planned for Europe and accused the European Union (EU) of being “nastier than China” before his Middle East visit.
“Trump doesn’t want China to develop a relationship in what I call the Middle East circle of friendship and that is Saudi Arabia, Qatar and UAE,” Kevin O’Leary, Chairman of O’Leary Ventures and a regular media personality, said on Fox News.
“And then you ask yourself why are all these AI guys with him? He wants these companies to form very strong bonds in AI, and when we get later this week to UAE, that’s what you’re going to hear.”
An A-list of US executives joined Trump in Saudi Arabia. They included Nvidia Corp. CEO Jensen Huang, AMD CEO Lisa Su, Tesla Inc. (TSLA) CEO Elon Musk, OpenAI CEO Sam Altman, and Palantir Technologies (PLTR) CEO Alex Karp.
Nvidia, AMD Announce Deals With Saudi Arabia
With Jensen in Riyadh, Nvidia announced that it will sell hundreds of thousands of AI chips in Saudi Arabia. The first tranche of 18,000 of its newest “Blackwell” chips will go to Humain, the startup launched by Saudi Arabia’s sovereign wealth fund. The startup is building AI factories in the Kingdom.
AMD announced a deal with Humain, saying it has formed a $10 billion collaboration. Over five years, it will deploy 500 megawatts of AI compute capacity. Humain will oversee end-to-end delivery of the hyperscale data center, sustainable power systems, and global fiber interconnects.
“Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure,” Su said in the press release. “Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels.”
Shares of Nvidia (NVDA) and AMD (AMD) rose 5.6% and 4.01%, respectively, after the announcement.
Musk Plans to Bring Robotaxis to Riyadh
Musk confirmed in Riyadh that Tesla plans to bring its autonomous Robotaxi platform to Saudi Arabia. He described the vehicles as “robots on four wheels” and expressed excitement about their potential in Saudi Arabia.
Saudi Arabia approved SpaceX’s Starlink for aviation and maritime use, expanding its satellite internet service in the region. They did not provide a timeline for use.
“The United States and Saudi Arabia share a commitment to deeper economic integration,” the White House said. The Kingdom demonstrated a commitment to expanding “cooperation in critical sectors such as health, energy, and science.”
In 2024, US-Saudi Arabia goods trade totaled $25.9 billion, with US exports at $13.2 billion, imports at $12.7 billion, and a trade surplus in goods of $443 million.
Trump Strengthens Close Ties with Saudi Leader
Trump has established close ties with leaders from the Gulf states from his first presidency. His relationship with Crown Prince Mohammed bin Salman, the de facto Saudi ruler, has grown stronger in the past eight years.
Trump praised Washington’s relationship with Riyadh. He described it as “stronger and more powerful than ever” during his speech in Riyadh. He noted the country’s massive economic changes.
In a nod to the Crown Prince, Trump confirmed he will end US sanctions on Syria. He received a standing ovation from the entire ballroom.
In an interview with Bret Baier from Fox News, Saudi Economy and Planning Minister Faisal Alibrahim said, “There is a very strong partnership…built on mutual respect” between Trump and the Crown Prince. In sharp contrast, some European leaders openly criticize Trump, making little effort to cultivate personal ties with the president.
“Trump’s decision to make the Arabian Peninsula his first planned international destination of his second term underscores that these are US partners he most wants to deal with,” Daniel Benaim, an associate fellow at the Middle East Institute, wrote on Monday.
CEOs Prefer Saudi Arabia, Gulf States Over Europe
Along with Trump, US CEOs have strong business ties with the region. They point to advances in AI, regulatory structures, and receptivity to US companies and investments.
Blackrock’s Larry Fink, speaking at the Saudi-US Investment Forum yesterday in Riyadh, pointed to “huge opportunities” in the Kingdom. Citi’s CEO Jane Fraser said that Saudi Arabia has developed non-oil ecosystems that are “opening up so many opportunities.”
The EU, in contrast, has curbed market access of US tech companies through its digital regulations. The EU is investigating US tech giants like Meta, TikTok, and X for potential breaches of its laws. In April, Brussels fined Apple Inc. (AAPL) €500 million.
“The receptivity is on the back of people…who, quite frankly, believe in their future,” Karp said yesterday. “Obviously, the great contradiction here is Europe, where you know it’s like people have given up.”
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