Context:

President Donald Trump embarked on his first international trip of his second term, visiting Saudi Arabia with a large delegation of top American CEOs, including leaders from major tech companies. The visit resulted in the signing of $600 billion worth of deals, emphasizing the sale of advanced AI chips to aid the Middle East's transition to a post-oil economy. These agreements signify a significant shift in US foreign policy compared to the previous administration and highlight the strategic importance of AI technology in global diplomacy and economic partnerships. Trump's visit underscores a new era of collaboration between the United States and Saudi Arabia, aligning with Saudi Arabia's Vision 2030 to diversify its economy away from oil dependency. The trip also included stops in Qatar and the United Arab Emirates, further cementing alliances in the Gulf region with a focus on technological advancement.

Dive Deeper:

• President Trump, accompanied by a high-profile delegation of American business leaders, initiated a tour of the Middle East, starting with Saudi Arabia, where substantial business deals were made, highlighting the strategic importance of AI technology in the region's economic future.

• The visit marked a departure from previous US foreign policy under President Joe Biden, as Trump aimed to foster closer ties with Saudi Arabia, a nation he had previously criticized over human rights concerns, specifically the murder of journalist Jamal Khashoggi.

• Central to the deals signed was the provision of AI chips from US tech giants such as Nvidia, AMD, and Qualcomm, intended to support Saudi Arabia's ambitious Vision 2030 plan to modernize and diversify its economy beyond oil reliance.

• Nvidia announced a partnership to establish AI 'factories' in Saudi Arabia, with plans to deliver hundreds of thousands of advanced processing units over five years, while AMD and Qualcomm also secured significant agreements for AI infrastructure development.

• Trump's tour extended to Qatar and the United Arab Emirates, where technological cooperation is also a priority, as evidenced by Microsoft's investment in Abu Dhabi's AI group G42, contingent on severing ties with Chinese hardware suppliers.

• The trip underscores a broader geopolitical strategy of strengthening US influence in the Gulf through technological diplomacy, positioning American companies as key partners in the region's economic transformation.

• The White House hailed the deals as transformative, representing a new era of partnership between the United States and Saudi Arabia, reflecting the broader goal of securing economic and strategic advantages in the Gulf.