Saudi Arabia and Amazon Web Services (AWS) have announced a strategic partnership involving a $5 billion-plus investment to build an “AI Zone” in the Kingdom. The AI Zone will integrate advanced features, including AI infrastructure, servers equipped with world-class semiconductors, UltraCluster networks, and services like SageMaker and Bedrock. These advancements aim to position Saudi Arabia as a leader in AI on the global stage.
The AI Zone is an additional investment in the previously committed infrastructure region, which will be available by 2026. It aligns with Saudi Arabia’s Vision 2030, which includes using AI to drive the national economy forward.
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The AI Zone will leverage state-of-the-art server and network infrastructure and AI and machine learning services to facilitate the development of generative AI applications that meet security and privacy standards.
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Abdullah Alswaha said, “We thank our partners for their long-term collaboration with the Kingdom. This new collaboration with HUMAIN strengthens Saudi Arabia’s position as a global AI partner.”
AWS and HUMAIN plan to support Saudi Arabia’s startup ecosystem by offering advanced cloud technology tools and programs. Training and talent development are also key components of this partnership, with programs aiming to equip 100,000 Saudi citizens with cloud computing and genAI skills.
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The “Saudi Arabia Women’s Skills Initiative” aims to train 10,000 women on Cloud Practitioner Essentials at no charge. Tareq Amin, CEO of HUMAIN, said, “HUMAIN’s partnership is transformative for Saudi Arabia’s AI ambitions. Leveraging cloud infrastructure and AI expertise will attract global investment and talent, propelling our digital transformation forward.
According to PwC, AI is expected to contribute $130 billion to Saudi Arabia’s economy by 2030, representing a significant share of the projected $320 billion impact of AI in the Middle East.
This partnership is expected to drive significant advancements in AI technology and cloud adoption in the region. Nvidia stock jumped 3.6% early Wednesday, extending its gains for the first time since February. The surge comes as US chipmakers, including Nvidia, announced multi-billion-dollar deals with Saudi Arabia during an investment forum attended by former President Trump on Tuesday.
Saudi partnership for advanced AI development
Nvidia revealed plans to sell Saudi Arabia one of its latest Grace Blackwell AI supercomputers, incorporating 18,000 of its advanced GB300 chips, over the next five years. The deal is part of Saudi Crown Prince Mohammed bin Salman’s broader strategy to position the kingdom as a leader in AI technology.
Bank of America analysts estimated the total value of Nvidia’s agreement to be $7 billion and subsequently raised its price target on Nvidia stock to $160 from $150. Fellow US chipmakers Advanced Micro Devices (AMD) and Qualcomm also announced significant agreements to support Saudi Arabia’s ambitious AI data center plans. Stacy Rasgon, an analyst at Bernstein, noted that these developments indicate robust demand for AI hardware.
Additionally, Super Micro Computer, a server maker incorporating Nvidia’s AI chips and designs, announced a $20 billion deal with Saudi Arabian data center company DataVolt. Super Micro Computer’s stock rose 16% on Tuesday and another 18% in early trading on Wednesday. On Tuesday, the Department of Commerce tightened restrictions to prevent the smuggling of US AI chips, such as Nvidia’s, to China.
The department stated that using Huawei Ascend chips worldwide would violate US export controls. Bernstein’s Rasgon pointed out that such measures could make it more challenging for Huawei to sell its chips outside China, which might benefit Nvidia and other US AI companies. President Donald J.
Trump announced Saudi Arabia’s commitment to invest in the United States, building lasting economic ties for generations. The first deals under this announcement enhance energy security, defense, technology leadership, and access to global infrastructure and critical minerals. Several deals were secured, including Saudi Arabian DataVolt’s plan to invest $20 billion in AI data centers and energy infrastructure in the United States, and a consortium including Google, DataVolt, Oracle, Salesforce, AMD, and Uber committing to invest $80 billion in transformative technologies across both countries.
The United States and Saudi Arabia signed the largest defense sales agreement in history, nearly $142 billion. The agreement includes state-of-the-art warfighting equipment and services from over a dozen U.S. defense firms. Collaboration agreements include cooperation in the energy field between the U.S. Department of Energy and the Saudi Ministry of Energy and a contract between NASA and the Saudi Space Agency for the flight of a CubeSat on NASA’s Artemis II mission.
President Trump continues to deliver on his promise to Make America Great Again by catalyzing investments and negotiating trade deals. The deepening United States-Saudi Arabia partnership reflects a joint vision for both nations’ long-term prosperity and employment opportunities.
Image Credits: Photo by Damir Babacic on Unsplash
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