Trump administration readies Saudi AI chip deal: Bloomberg
Make us a preferred source
Make us a preferred source on Google
The news: The Trump administration is preparing to unveil a deal granting Saudi Arabia greater access to advanced semiconductors from the likes of Nvidia and Advanced Micro Devices (AMD), according to sources cited by Bloomberg.
The context: The agreement would boost the Gulf state’s ability to increase its data centre capacity, despite previous concerns about Riyadh’s links to China.
Sources told Bloomberg that the US and Saudi governments are hashing out key details of the agreement which is still in early stages. Core concerns for the US include the possibility that China may access its ‘gold standard’ chips by directly diverting physical shipments of the chips, or by tapping into capabilities of the chips via cloud technology. One condition being discussed would see the US control access to data centres that use US chips.
Trump is also expected to unveil a second AI chip deal with the United Arab Emirates when he visits later in the trip.
The news comes as US President Donald Trump begins his tour de force of the Middle East in Riyadh, reportedly with a focus on rolling out agreements with countries in the region.
What they said: Last week, White House AI adviser David Sacks wrote on X: “We must take aggressive steps to prevent advanced semiconductors from being illegally diverted into China … But that goal should not preclude legitimate sales to the rest of the world as long as partners comply with reasonable security conditions.”
The sources: David Sacks X, Bloomberg
