A new Strategic Artificial Intelligence Partnership between the United States and Saudi Arabia has been signed, paving the way for increased exports of advanced US semiconductors to the Kingdom and significant Saudi investment into the US technology sector. The agreement, formalized by Saudi Foreign Minister Prince Faisal bin Farhan and US Secretary of State Marco Rubio, focuses on semiconductor supply, AI infrastructure development, national capability building, and high-value cross-border investment.
The Deal’s Significance
This pact solidifies policy frameworks for technology and investment deals initially discussed during President Trump’s visit to Saudi Arabia in May. The agreement effectively reverses Biden-era export restrictions on AI chips, allowing large-scale exports to Saudi Arabia and the UAE. This shift aligns with Trump’s new rules linking export access to foreign direct investment, creating a clear pathway for Saudi capital into US AI ventures while accelerating the scale of Saudi AI infrastructure.
Key Components of the Partnership
The partnership encompasses several key areas:
- Semiconductor Supply: Facilitating the flow of advanced chips critical for AI development.
- AI Infrastructure: Supporting the build-out of AI applications and related infrastructure.
- National Capability Programs: Developing the workforce needed to sustain long-term AI growth.
- Investment Flows: Encouraging reciprocal investment in both countries’ AI ecosystems.
Saudi Arabia intends to leverage its geographic advantages, energy resources, and available land to establish AI and cloud-computing hubs serving regional and global demand. The US seeks to leverage its tech ecosystem to stimulate economic growth through deeper ties with Saudi organizations and investors, attracting capital to US AI startups, semiconductor firms, and research institutions.
Early Investment Signals
A $900 million Series C funding round for US video AI startup Luma AI, led by Saudi national AI company HUMAIN, has already been announced. This round includes participation from AMD Ventures and existing US venture investors, underscoring the partnership’s immediate impact.
Scaling Saudi AI Capacity
Saudi Arabia is deploying unprecedented capital to build large-scale AI infrastructure, partnering with major US AI infrastructure companies, including AMD, Groq, NVIDIA, and Qualcomm. The $10 billion AMD–HUMAIN joint venture, announced during Trump’s May visit, aims to deliver 6GW of AI compute capacity by 2034. This includes bringing 100MW online by early 2026, scaling by 50MW per quarter, with two major campuses housing 11 data centers of 200MW each. HUMAIN’s investment in Luma AI will consume the entire 100MW capacity of the first phase.
Broader Strategic Implications
This agreement follows the US–UAE AI Acceleration Partnership, signaling a broader US strategy to structure AI cooperation with Gulf economies through linked investment and technology commitments. The partnership aims to integrate AI into key sectors, including health, education, energy, mining, and transportation, driving long-term economic diversification.
The Strategic Artificial Intelligence Partnership marks a new milestone in US–Saudi economic security cooperation, linking AI development to strategic priorities such as productivity, national capabilities, and technological resilience. This collaboration underscores a growing trend of geopolitical alignment through technology investment, reshaping the global AI landscape.
