Trump Administration Divided: Nvidia and AMD's AI Chip Deals with Middle East Stir Security Concerns Amid Economic Ambitions

Recent reports indicate that internal divisions have arisen within the Trump administration regarding potential transactions between U.S. tech giants Nvidia and AMD and their Middle Eastern partners. This tension centers around the proposed agreements with Saudi Arabia and the United Arab Emirates, which could involve substantial exports of advanced semiconductor technology.

Sources close to the deliberations reveal that Nvidia is set to export 18,000 top-tier AI chips to Saudi Arabia, enhancing their AI infrastructure capabilities. Concurrently, AMD has announced a collaboration with Saudi-based AI firm Humain, aiming to support data centers stretching from the Middle East to the United States. These deals, particularly Nvidia's proposal to export over one million chips to the UAE, have sparked debate within the Trump administration due to the sheer volume surpassing previous regulatory limits established under the Biden administration.

Such high-stakes transactions have prompted significant scrutiny. While these deals align with Saudi Arabia's ambitious AI-driven "2030 Vision" plan — expected to propel economic diversification and technological innovation — they also raise critical questions about national security and tech sovereignty. U.S. officials are considering the broader implications these exports might have for global competitive dynamics in AI technology.

Simultaneously, the impending desire for collaboration reflects Saudi Arabia’s strategic investments and burgeoning interest in AI, viewed as pivotal for economic modernization. Humain, under direct oversight of Saudi Crown Prince Muhammad bin Salman, plays a crucial role in bridging technological gaps and fostering international partnerships. Their ambitious goals include building an expansive AI network powered by Nvidia and AMD technologies.

Despite these promising prospects, deep-seated concerns among U.S. policymakers persist. Decision-makers are faced with balancing commercial opportunities against potential risks, particularly around technological transfer and dependency. As the discussions advance, these debates underscore the complexities of international tech collaborations in a rapidly evolving geopolitical landscape.