US President Donald Trump just concluded an ambitious nine-country tour of the Gulf. He trumpeted the recent $1.4 trillion in investment pledges from Intel, Micron, and others to revitalize domestic semiconductor manufacturing and support AI development. For context, this tour achieved marquee agreements with the United Arab Emirates (UAE), Saudi Arabia, and Qatar. Each of these countries is hungry to diversify their economy beyond a reliance on oil and ramp up their AI initiatives.
Because Trump’s visit came at a time when his administration was focusing efforts on encouraging foreign investment to strengthen US manufacturing capacity. The agreements signed during this visit represent a dramatic turn to technology and AI. They’re a reminder of the difference between open ambitions and realized aspirations.
Strategic Partnerships in AI
Throughout that historic visit, President Trump stood shoulder-to-shoulder with the UAE’s President Sheikh Mohamed bin Zayed Al Nahyan. Collectively, they announced an unprecedented, historic investment focused entirely on AI. This new agreement now develops a 10-square-mile AI campus in Abu Dhabi. The sprawling campus will be home to 5 gigawatts worth of data centers. The campus will be built by UAE-based AI firm G42 in partnership with a number of leading US firms.
US Secretary of Commerce Howard W. Lutnick emphasized the significance of this agreement:
“This agreement is a major milestone in achieving President Trump’s vision for US AI dominance.”
The joint statement features robust language around protecting advanced AI technologies. This prevents China from being able to indirectly purchase American AI chips. The US Department of Commerce described this deal as “a testament to the ongoing collaboration between our countries in artificial intelligence.”
Major Deals with Saudi Arabia and Qatar
Beyond these normalizing agreements with the UAE, Trump reached a staggering $80 billion AI investment agreement with Saudi Arabia. This accomplishment further underscores his political power in the area. This investment will increase the capacities of primary US technology companies. To that end, chipmakers, especially those such as Nvidia that will provide the high-performance GPUs needed to support these new initiatives, should look forward to their stock price pumping in tandem.
Saudi Arabia announced a total of $600 billion in investment agreements. Meanwhile, Qatar’s contribution to the collective effort was a notable $243 billion. These deals reflect a broader strategy by the Gulf states to shift their economic foundations from oil dependency towards technology-driven growth.
The US Department of Commerce highlighted the significance of these investments, stating:
“The new AI campus, the largest outside of the US, will host American hyperscalers and large enterprises, enabling regional compute capabilities while serving the Global South.”
A Vision for Future Collaboration
Trump’s Middle East tour not only underscored his administration’s commitment to enhancing US manufacturing through foreign investments but positioned the United States as a key partner in the Gulf states’ pursuit of technological advancements. The pledges signed over the course of this trip represent a turning point in creating an international partnership to approach development and deployment of AI responsibly.
UAE President Sheikh Mohamed bin Zayed Al Nahyan remarked on the importance of these agreements:
“The UAE is committed to safeguarding advanced AI technologies by implementing stringent measures to prevent diversion and ensure controlled access.”
Leave a Reply