From Oil to AI: Trump's Bold Gambit to Turn 'Petro Dollars' Into 'Tech Investors'
2min read Numerous big deals, a new private jet, countless praises... Trump's Middle East Trip Was Full of Highlights, But the Most Fascinating Was His "AI Gambit".
As previously reported, now with the rapid rise of artificial intelligence, Trump aims to establish an AI hegemony ecosystem. This ambition was evident during his Middle East trip. First, deregulation: Trump rolled back the Biden administration's restrictions on AI chip exports, and Republicans are pushing a bill to prohibit AI regulations for the next decade, clearing the path for AI development.
Second, the Middle East is pouring $2.2 trillion into building massive data centers and purchasing U.S. AI chips, tethering its AI growth to American companies.
These moves open vast new markets for U.S. AI firms- Nvidia's stock surged 6% on Tuesday as evidence of this trend.
Deregulation: Removing the "Red Lights" for AI Development
Citing media reports, the U.S. Commerce Department's Bureau of Industry and Security (BIS) plans to revoke the Biden-era "AI proliferation rules," which previously restricted exports of cutting-edge AI chips to certain countries, including the Middle East. This aligns perfectly with the interests of Saudi Arabia and the UAE- countries eager to leverage their vast wealth to rapidly build AI infrastructure, free from traditional Western regulatory constraints.
Domestically, the Trump administration has also embraced a "government should step aside, let American businesses thrive" approach. Last Saturday, Trump fired U.S. Copyright Office Director Shira Perlmutter, shortly after her agency released a report questioning tech companies' use of copyrighted materials to train AI systems.
Meanwhile, the House Energy and Commerce Committee slipped a provision into a major tax and spending bill that would ban states from regulating AI for the next 10 years. While the clause is unlikely to pass in its current form, it signals Washington's growing appetite for deregulation.
If enacted as drafted, the bill would mark a major victory for Big Tech- companies like Meta, Microsoft, OpenAI, and Alphabet, which argue that state-level regulations stifle innovation. The measure would impose a 10-year freeze on "any law or regulation governing AI models, AI systems, or automated decision-making systems."
New Missions For 'Petrodollars': From Energy Kingdoms to AI Empires
While tearing down regulatory barriers, Trump is also "attracting investment"- exporting AI to the Middle East to expand America's AI dominance.
As previously reported, during Trump's four-day Middle East tour, Saudi Arabia, Qatar, and the UAE pledged trillions of dollars in exchange for access to advanced AI chips, accelerating their own AI development.
Notably, Saudi Arabia's sovereign wealth fund has already invested over $100 billion in U.S. AI startups and data center projects. The UAE has followed suit, with its tech investment arm Mubadala pumping billions into AI chip manufacturing and large language model (LLM) development.
No longer content with being just the world's gas station, these Gulf nations are rapidly transforming into key investors in global AI infrastructure. Analysts note that Saudi Arabia and the UAE bring not just capital but also energy- a critical advantage, given AI data centers' massive power demands.
This approach allows U.S. AI models and technologies to expand globally while funneling more international capital into America's tech ecosystem. Fast Company reported that during Trump's meeting with Saudi Crown Prince Mohammed bin Salman in Riyadh, a deal was struck: Saudi Arabia would gain direct access to America's most advanced AI models in exchange for increased investments in U.S. chipmakers and data center firms.
One thing is clear: With Middle Eastern money merging with U.S. tech, combined with looser regulations, the next chapter of AI development will feature fewer restrictions, more capital, and faster innovation
