Saudi Arabia Eyes Nvidia's AI Chips to Power Vision 2030 Ambitions

Saudi Arabia is optimistic about securing Nvidia's high-performance chips, a move poised to significantly enhance its ability to develop and deploy advanced AI models. Abdulrahman Tariq Habib, a senior official at the Saudi Data and Artificial Intelligence Authority (SDAIA), indicated that the kingdom anticipates making this progress by next year.

During the Saudi International Artificial Intelligence Summit (GAIN) held in Riyadh, Habib stated, "I believe within the next year," when asked about a potential timeline. This is a substantial expectation given the stringent U.S. export controls that have so far prevented chip exports to Saudi Arabia.

Habib emphasized that acquiring these chips is of paramount importance to Saudi Arabia, particularly Nvidia's powerful H200 chip, which is essential for powering cutting-edge AI models like OpenAI's GPT-4. Such a development is anticipated to alleviate trade barriers between Saudi Arabia and the U.S. and unlock numerous opportunities for advancing the kingdom's computing capabilities.

Saudi Arabia is investing heavily in developing a robust AI ecosystem. A report by SDAIA disclosed that the nation aims to have AI contribute 12% to its GDP by 2030, spearheaded by the Public Investment Fund's $925 billion agenda. This initiative forms part of Crown Prince Mohammed bin Salman's Vision 2030, which seeks to modernize the Saudi economy and diversify its revenue streams beyond oil.

Further, market reports indicate that the Public Investment Fund is in discussions to establish a $40 billion fund for AI investments, in collaboration with major U.S. venture capital firms such as Andreessen Horowitz. This strategic move underscores the growing AI collaboration between Saudi Arabia and the U.S.

According to Habib, the U.S. government is considering easing export rules to facilitate Saudi Arabia's access to high-performance chips. He remarked that this reflects a positive trajectory in U.S.-Saudi relations in the AI sector. The proposed policy shift would demonstrate Saudi Arabia's emerging status as a significant player in AI, aligning with global powerhouses like the United States.