Nvidia and AMD are supplying chips to Saudi Arabia for its AI data centers, according to BNN Bloomberg.
Nvidia and AMD, two leading tech companies, have partnered with Saudi Arabia’s AI company, Humain, to provide cutting-edge chips for a new data center project. This collaboration follows a decision under the Trump administration that lifts restrictions on exporting advanced technology to Saudi Arabia.
Nvidia’s CEO, Jensen Huang, announced this partnership at the Saudi-US Investment Forum in Riyadh during a visit by President Donald Trump. The partnership marks a significant step in the development of AI infrastructure in the Middle East. AMD, on the other hand, will supply both chips and software for the vast network of data centers, which will span from Saudi Arabia to the United States, with the project valued at a massive $10 billion.
Saudi Arabia’s energy resources position it perfectly to support the immense power needs of artificial intelligence. Huang highlighted how Nvidia’s technology will help unlock new AI capabilities, allowing the kingdom to stay at the forefront of technological advancements. Following the announcement, Nvidia’s stock saw a notable increase, rising by 6.4% on the New York stock exchange, while AMD shares rose 4.5%.
Both companies are looking to expand their reach in the AI accelerator market, a sector where a few major players, such as Microsoft and Amazon, currently dominate. AI accelerators, the chips that power AI software, are in high demand. These technologies are now being sought after by state-backed AI initiatives, such as the one led by Saudi Arabia.
Humain, which is backed by Saudi Arabia’s Public Investment Fund, was recently introduced as part of the kingdom’s drive to develop its AI infrastructure. This includes building state-of-the-art data centers and creating Arabic-language versions of generative AI models. CEO Tareq Amin revealed plans to develop 1.9 gigawatts of data center capacity by 2030, which will play a crucial role in the country’s AI efforts.
The Public Investment Fund’s initiative to build these “AI factories” in Saudi Arabia will significantly impact the region’s tech landscape. Nvidia will provide several hundred thousand of its top-tier chips for this project, with the first phase involving 18,000 of the company’s GB300 Grace Blackwell products and InfiniBand networking technology.
To comply with regulations, Saudi Arabia requires that personal and financial data be stored within the country. This has prompted global companies like Amazon, Google, and Oracle to establish data centers within the kingdom to maintain access to lucrative contracts. Amazon, for example, committed to investing $10 billion in data centers within Saudi Arabia in 2024.
While Nvidia leads the AI accelerator market, AMD continues to compete and build its position in this rapidly growing field. However, tighter US regulations on tech exports are making it harder to expand into markets like China, where the US government has expressed national security concerns.
