Trump Flies Over Europe, Secures $600B Deal, Mideast Geopolitical Wins
A-list of US executives join Trump in Saudi Arabia, including NVIDIA CEO Jensen Tesla CEO Musk and AMD CEO Su
President Donald J. Trump flew over Europe yesterday to Saudi Arabia, where some of America’s most powerful business leaders were in tow. There, he secured investments and geopolitical influence.
On the first day of Trump’s visit to the Gulf region, the White House announced a $600-billion investment commitment from Saudi Arabia. The deal will build economic ties that “will endure for generations to come,” the White House said.
The two countries also signed a $142 billion defense sales agreement, which provided Saudi Arabia with state-of-the-art warfighting equipment and services from US defense firms. Trump also secured investment commitments from the US and Saudi private sectors.
Saudi Arabian DataVolt plans to invest $20 billion in US AI data centers and energy infrastructure. Alphabet Inc. (NASDAQ: GOOGL), DataVolt, Oracle Corp. (NYSE: ORCL), Salesforce Inc. (NYSE: CRM), Advanced Micro Devices Inc., and Uber Technologies Inc. (NYSE: UBER) have committed to investing $80 billion in cutting-edge transformative technologies in both countries.
"A great day in Saudi Arabia!!!", Trump said in a post on the White House’s X account.
Trump’s Visits Highlight Region’s Geopolitical Importance
The two-day visit has highlighted the importance of the Middle East for US companies and the country’s broader geopolitical strategy. Trump will visit Qatar and the United Arab Emirates (UAE). He has no stops in Europe and accused the European Union (EU) of being “nastier than China” before his Middle East visit.
“Trump doesn’t want China to develop a relationship in what I call the Middle East circle of friendship and that is Saudi Arabia, Qatar and UAE,” Kevin O’Leary, Chairman of O'Leary Ventures and a regular media personality, said on Fox News.
“And then you ask yourself why are all these AI guys with him? He wants these companies to form very strong bonds in AI, and when we get later this week to UAE, that's what you're going to hear.”
An A-list of US executives joined Trump in Saudi Arabia. They included Nvidia Corp. CEO Jensen Huang, AMD CEO Lisa Su, Tesla Inc. (NASDAQ: TSLA), SpaceX CEO Elon Musk, OpenAI CEO Sam Altman, and Palantir Technologies (NASDAQ: PLTR) CEO Alex Karp.
Nvidia, AMD Announce Deals With Saudi Arabia
With Jensen in Riyadh, Nvidia announced that it will sell hundreds of thousands of AI chips in Saudi Arabia. The first tranche of 18,000 of its newest "Blackwell" chips will go to Humain, the startup launched by Saudi Arabia's sovereign wealth fund. The startup is building AI factories in the Kingdom.
AMD also announced a deal with Humain, saying it has formed a $10 billion collaboration. Over five years, it will deploy 500 megawatts of AI compute capacity. Humain will oversee end-to-end delivery, including the hyperscale data center, sustainable power systems, and global fiber interconnects.
“Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure,” Su said in the press release. “Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels.”
Shares of Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) rose 5.6% and 4.01%, respectively, after the announcement.
Musk Plans to Bring Robotaxis to Riyadh
During a fireside chat in Riyadh, Musk confirmed that Tesla plans to bring its autonomous Robotaxi platform to Saudi Arabia. He described the vehicles as “robots on four wheels” and expressed excitement about their potential in Saudi Arabia.
Saudi Arabia also approved SpaceX’s Starlink for aviation and maritime use, expanding its satellite internet service in the region. However, they did not provide a timeline for use.
“The United States and Saudi Arabia share a commitment to deeper economic integration,” the White House said. This “underscores the Kingdom’s pledge of expanding cooperation in critical sectors such as health, energy, and science.”
In 2024, US-Saudi Arabia goods trade totaled $25.9 billion, with US exports at $13.2 billion, imports at $12.7 billion, and a trade surplus in goods of $443 million.
Trump Strengthens Close Ties with Saudi Leader
Since Trump’s first visit to Riyadh as the 45th president, he has established close ties with leaders from the Gulf states. His relationship with Crown Prince Mohammed bin Salman, the de facto Saudi ruler, has grown stronger in the past eight years.
During his speech in Riyadh, Trump praised Washington’s relationship with Riyadh, describing it as “stronger and more powerful than ever.” He also noted the country's massive economic changes.
In a nod to the Crown Prince, Trump confirmed he will end US sanctions on Syria. He received a standing ovation from the entire ballroom, including Crown Prince Mohammed.
In an interview with Bret Baier from Fox News, Saudi Economy and Planning Minister Faisal Alibrahim said, “There is a very strong partnership…built on mutual respect” between Trump and the Crown Prince. In sharp contrast, some European leaders openly criticize Trump, equating him to a “Russian dictator,” and an “authoritarian,” while making little effort to cultivate personal ties with the president.
“Trump’s decision to make the Arabian Peninsula his first planned international destination of his second term underscores that these are US partners he most wants to deal with,” Daniel Benaim, an associate fellow at the Middle East Institute, wrote on Monday.
CEOs Prefer Saudi Arabia, Gulf States Over Europe
Along with Trump, US CEOs have strong business ties with the region. They point to advances in AI, regulatory structures, and receptivity to US companies and investments.
Blackrock’s Larry Fink, speaking at the Saudi-US Investment Forum yesterday in Riyadh, pointed to “huge opportunities” in the Kingdom. Citi’s CEO Jane Fraser said Saudi Arabia is developing non-oil ecosystems that are “opening up so many opportunities.”
In contrast, the EU has tried to curb the market access of US tech companies through its regulations. The EU is investigating US tech giants like Meta, TikTok, and X for potential breaches of its laws. In April, Brussels fined Apple Inc. (AAPL) €500 million.
“The receptivity is on the back of people…who, quite frankly, believe in their future,” Karp said yesterday. “And so obviously, the great contradiction here is Europe, where you know it's like people have given up.”
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