U.S.-Saudi deal includes $5 billion energy investment fund, $5 billion aerospace and defense technology fund, $4 billion global sports fund - White House fact sheet

U.S.-Saudi deal includes $5 billion energy investment fund, $5 billion aerospace and defense technology fund, $4 billion global sports fund - White House fact sheet

In a significant move that underscores the growing economic ties between Saudi Arabia and the United States, the two nations have unveiled a sweeping £470 billion ($600 billion) investment package. This landmark deal, announced on [May 28, 2025], focuses on artificial intelligence (AI), defense, and energy, marking one of the largest economic pledges ever made between the two countries.

AI at the Heart of the Deal

Central to the Saudi-US pact is a major push into AI, led by Humain, Saudi Arabia's state-backed AI company. Humain plans to inject over £7.8 billion ($10 billion) into AI venture capital, targeting partnerships with major US firms and startups. The company is already collaborating with American giants like Nvidia, Amazon Web Services, and Qualcomm, aiming to boost data centre capacity to 6.6GW by 2034. This initiative positions Saudi Arabia as a potential global AI powerhouse [1].

Defense Spending Reinforces Military Ties

About £111 billion ($142 billion) of the investment is directed towards defense, involving arms deals with over a dozen US companies. These deals strengthen the already strategic military relationship between the two nations. Saudi Arabia remains a key US ally in the Gulf, and these new investments ensure continued defense cooperation amidst rising regional tensions [1].

Energy Investment Powers Sustainability Goals

The Kingdom is also pouring money into US energy infrastructure. Saudi firm DataVolt will invest £15.7 billion ($20 billion) in AI data centres, green energy grids, and high-efficiency power solutions. In parallel, US-based GE Vernova will provide gas turbines and other energy technologies valued at £11.1 billion ($14.2 billion), aimed at modernizing the American grid and supporting clean energy transitions. Saudi Arabia's strategic goal is to use energy investment not only to secure economic diversification but also to support its Vision 2030 plan, which seeks to reduce its reliance on oil by embracing renewable and digital futures [1].

Expanding US–Saudi Economic Integration

Beyond AI, defense, and energy, the investment package includes a £3.9 billion ($5 billion) Energy Fund and a similar-sized Aerospace and Defence Technology Fund. Other investments include sports ventures and large-scale infrastructure consulting projects with American firms such as AECOM and Parsons. These deals are expected to create thousands of US jobs and drive exports. According to White House estimates, more than £1.6 billion ($2 billion) worth of U.S. services will be exported to support Saudi-led initiatives [1].

Global Implications

Saudi Arabia's strategic move reflects a seismic shift in global economic influence. By positioning itself as a leader in both AI and energy, the Kingdom is signaling its transition from an oil giant to a technology and infrastructure player. For the US, the partnership offers fresh capital for high-growth industries and reinforces its strategic ties in a rapidly evolving geopolitical landscape [1].

References

[1] http://www.ibtimes.co.uk/saudi-arabia-commits-470bn-us-ai-defence-energy-historic-investment-drive-1734501