US-Saudi ties pivot to tech: AI chips and a US$1 trillion pledge

CROWN Prince Mohammed bin Salman’s return to Washington after seven years signalled a fundamental recalibration of US-Saudi relations around economic pragmatism and strategic necessity. While the alliance was forged on security for oil, this visit cements a pivot towards technology as the new cornerstone of the partnership.

The strategic shift regarding artificial intelligence (AI) is central to this new chapter. Saudi Arabia secured access to 600,000 advanced Nvidia AI chips through the government-backed firm Humain, alongside commitments for major data centre development, including a 500-megawatt joint venture with Elon Musk’s xAI.

This pivot serves multiple purposes. For Saudi Arabia, it advances the kingdom’s ambition to position itself as an AI hub, leveraging its abundant land, energy resources, and strategic geographic location. For the US, it represents an effort to counter China’s dominance in critical technologies while creating a Gulf alternative to Chinese partnerships.