Nvidia’s share price rose sharply by 5.6% on Tuesday. This happened after the United States and Saudi Arabia announced a major new AI investment agreement. The deal was signed during a high-profile summit led by US President Donald Trump and Saudi Crown Prince Mohammed bin Salman.
The agreements include hundreds of billions of dollars in investments. These funds will support advanced technology projects across both countries. Part of the deal is an $80 billion investment in tech, plus a $142 billion defense package.
Top Tech Leaders Join the Summit
Nvidia’s CEO, Jensen Huang, was part of Trump’s delegation. Other tech leaders who attended include Elon Musk, Sam Altman from OpenAI, and Lisa Su of AMD. This shows how important AI and technology are becoming in global diplomacy.
The Trump administration revealed Saudi Arabia’s promise to invest $600 billion. This money will go to various sectors such as AI, defense, aerospace, and sports. Despite Nvidia’s recent stock surge, the company’s shares are still down 4.5% for the year 2025. This is due to strong competition and ongoing tensions between the US and China.
Trump’s Middle East Strategy Expands
Besides the Saudi deal, President Trump also announced plans to lift all US sanctions on Syria. This move aims to strengthen America’s ties in the Middle East. Trump also plans to meet with officials from Qatar and the UAE later this week. These meetings seek to further expand cooperation in the region.
Saudi Arabia Plans AI Powerhouse with Nvidia
One of the biggest parts of the deal is Saudi Arabia’s plan to build a major AI infrastructure. Nvidia will supply 18,000 Grace Blackwell AI supercomputers to HUMAIN. HUMAIN is Saudi Arabia’s state-backed AI company. The goal is to create AI factories with up to 500 megawatts of processing power.
Saudi Arabia’s SDAIA, the national data and AI authority, plans to add 5,000 more GPUs. These chips will power AI systems for the country’s smart city projects and other high-tech uses. Aramco Digital, the technology arm of Saudi oil giant Aramco, will work with Nvidia to scale up AI infrastructure across the kingdom.
Nvidia’s technology will support robotics, cloud computing, digital twins, and next-generation enterprise systems. Saudi Arabia hopes to attract $100 billion in foreign investment each year. This is part of its Vision 2030 plan, which aims to reduce the country’s dependence on oil.
At the same summit, other US tech companies such as AMD, Amazon, Cisco, and OpenAI also announced plans to invest in Saudi Arabia. Trump’s administration is also negotiating with the UAE. They want to approve imports of over one million Nvidia chips to the region.
US Changes AI Export Rules to Boost Business
The US Commerce Department recently canceled a Biden-era rule. This rule was set to restrict AI chip exports to China, Saudi Arabia, and the UAE. The original rule was due to take effect on May 15. The Biden administration intended to tighten controls on AI technology.
However, Trump’s administration called the rule “counterproductive.” They replaced it with a new policy that supports exporting AI chips to trusted allies. The Commerce Department also released new guidance to tighten controls. It blocks indirect shipments to China, while allowing exports to countries like Saudi Arabia.
This shift in policy is a big win for US chipmakers. They expect easier access to overseas markets and fewer rules to follow. Trump’s AI strategy also aims to build stronger global partnerships. It challenges the Biden-era approach of restricting AI exports.
Nvidia and the AI Race
This new agreement puts Nvidia in a strong position. The company will play a key role in Saudi Arabia’s AI ambitions. It also signals the US government’s support for US tech companies competing globally.
The deal is more than just business. It reflects how AI and technology have become central to geopolitics. As countries race to develop AI, alliances and investments will shape the future.
Nvidia’s stock may continue to rise as these projects grow. But the company still faces challenges, including competition from rivals and political tensions worldwide.