• Nvidia’s stock soared 5.6% on Tuesday, closing at $129.93, following the announcement of a significant AI partnership with Saudi Arabia’s sovereign wealth fund-backed startup, HUMAIN.

• The deal involves Nvidia supplying 18,000 of its advanced GB300 Grace Blackwell AI chips to power a 500-megawatt data center in Saudi Arabia, marking one of the first deployments of its latest AI technology.

• This partnership is part of a broader $600 billion investment initiative between the US and Saudi Arabia, announced during President Trump’s visit to the Gulf region. The initiative includes significant investments in defense, AI, energy, and other sectors.

• In addition to Nvidia, other major US tech firms like AMD, Amazon, and Cisco have announced AI investment plans in Saudi Arabia, reflecting the kingdom’s ambition to become a global AI hub under its Vision 2030 strategy.

• The US Department of Commerce has rescinded the Biden-era AI diffusion rule, which had imposed restrictions on AI chip exports. This policy shift is expected to facilitate increased AI collaboration between the US and trusted partners like Saudi Arabia.

What’s Next?
Nvidia’s strategic move into the Middle East, particularly through its partnership with HUMAIN, underscores the growing importance of AI infrastructure in global economic development. By aligning with Saudi Arabia’s Vision 2030, Nvidia not only expands its market reach but also plays a pivotal role in shaping the future of AI on a global scale. This collaboration could serve as a blueprint for similar partnerships worldwide, emphasizing the significance of cross-border cooperation in technological advancement.