U.S. to Boost Saudi Arabia’s Access to AI Chips in Strategic Tech Shift

The Biden-era "AI Diffusion Rule," which imposed sweeping restrictions on AI chip exports to non-allied nations, had limited the ability of U.S. firms to engage in high-tech partnerships with governments across the Gulf. But under the Trump administration’s revised framework, Saudi Arabia is now being categorized as a “preferred technological partner,” clearing the path for major chipmakers like Nvidia, AMD, and Super Micro Computer to supply advanced systems to the region.

Nvidia has already confirmed it will supply over 18,000 of its cutting-edge Blackwell GB300 AI chips to Humain, a sovereign AI initiative backed by the Saudi Public Investment Fund (PIF). These GPUs will power massive data centers totaling 500 megawatts of computing capacity, enough to support the training and deployment of large-scale language models and other generative AI systems.

Nvidia CEO Jensen Huang, speaking at the Saudi-U.S. Investment Forum in Riyadh, emphasized the strategic importance of the partnership, stating, “AI, like electricity and internet, is essential infrastructure for every nation.” He added, “Together with Humain, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom.”

Meanwhile, AMD is committing more than $10 billion in joint investments to support AI infrastructure buildouts across the Kingdom. Supermicro has announced a separate $20 billion multi-year deal with Saudi data center firm DataVolt to provide advanced servers and cooling systems for hyperscale campuses.

These moves align with Saudi Arabia’s ambitious Vision 2030 agenda, which aims to transform the oil-dependent economy into a diversified, knowledge-based one. The creation of Humain is central to that strategy, with the goal of making the Kingdom a regional leader in sovereign AI, cloud computing, and high-tech R&D.

While the U.S. remains cautious about the global spread of AI chips, the Trump administration has argued that it can curb misuse by adversaries without stifling innovation among allies. Officials say the revised approach allows for “tiered export permissions,” enabling sensitive technologies to flow to governments that meet transparency and cybersecurity criteria.

Still, the pivot has sparked debate in Washington. Critics argue that even trusted partners could misuse AI technology for surveillance or repression.

Democratic lawmakers, including Senator Ron Wyden (D-OR), have called for increased oversight of AI chip exports. Wyden has urged the U.S. government to strengthen export controls and ensure that advanced technologies are not transferred without clear safeguards. He emphasized the importance of responsible use and accountability when engaging with international partners.

At the heart of the decision is a growing concern over China’s rapid AI advancement. Beijing has aggressively pursued access to high-end chips through subsidiaries, third-party shell companies, and international alliances. U.S. officials say that by empowering allied nations with AI capabilities, Washington can strengthen the global counterweight to China’s influence.

David Bailey, a crypto advisor to President Trump, has emphasized the strategic importance of emerging technologies like cryptocurrency and AI in shaping global power dynamics. Bailey has consistently advocated for U.S. leadership in digital innovation to ensure that democratic values guide the development of next-generation technologies.

The deals with Saudi Arabia may pave the way for similar arrangements with other countries in the region, including the UAE and Qatar, both of which are investing heavily in sovereign cloud and AI research hubs.

As the U.S. redefines its role in the global AI race, the partnership with Saudi Arabia could serve as a blueprint or a flashpoint, for how emerging technologies are shared, regulated, and geopolitically leveraged.