Talking Points | Silicon and Sovereignty: What Trump’s AI Pact Means for the Gulf
By the Basilinna Team
May 30, 2025
Your talking points
Trump’s Gulf tour marked a shift from traditional security diplomacy to tech-driven alliances, particularly in AI and cloud computing.
The UAE and Saudi Arabia secured historic access to advanced U.S. semiconductors and AI partnerships, signaling a recalibration of global tech influence away from China, and inserting the Gulf squarely into the center of the U.S.-China technology rivalry.
These deals were not isolated, they came with sweeping investments, totaling more than $2 trillion in commitments, and accompanied by a powerful U.S. business delegation.
The Middle East is no longer a passive consumer of Western technology; it is positioning itself as a competitive hub for AI development and deployment.
Beyond the Points
What Happened?
English: President Donald Trump participates in a coffee ceremony with Saudi Crown Prince Mohammed Bin Salman Al Saud at the Royal Court Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (Official White House Photo by Daniel Torok)
President Donald Trump’s recent four-day tour of Saudi Arabia, Qatar, and the United Arab Emirates highlighted a growing shift in U.S. foreign policy, one that prioritizes technology and artificial intelligence as key levers of influence in the Middle East. The tour culminated in a flurry of announcements that tied AI access, cloud infrastructure, and semiconductors to America’s closest Gulf partners, effectively laying the groundwork for a digitally reconfigured Middle East.
In the UAE, the biggest headline was the agreement that creates a pathway for Abu Dhabi to acquire some of the world’s most advanced AI semiconductors from U.S. companies. While the chips themselves are powerful, the real significance lies in the strategic implications: the deal is contingent on AI infrastructure, including data centers, being operated and secured by U.S. firms. This move represents a significant vote of confidence in the UAE’s digital ambitions, while simultaneously pulling it away from China’s AI supply chain and surveillance tech ecosystem.
Trump described the AI semiconductor agreement as “a very big contract” and a “major boost” to the UAE’s position as a rising global player in artificial intelligence. U.S. companies are expected to manage the physical security of AI systems and implement strict compliance protocols around export controls and data handling. This includes measures to ensure compliance with U.S. laws, prevent unauthorized resale or diversion of advanced chips, particularly to China, and maintain oversight of how sensitive data is processed, stored, and shared. For the UAE, this is not just about acquiring hardware, it marks a strategic step toward joining the ranks of AI-capable states, as the U.S. seeks to replace Chinese technology with its own. The agreement aligns with Washington’s long-term objectives of maintaining global technological leadership and limiting Chinese technological influence in the Middle East.
Meanwhile, in Saudi Arabia, the Kingdom signed over $300 billion in bilateral deals with U.S. companies. Among the most significant were six AI and digital technology agreements inked during the Saudi-U.S. Investment Forum, coinciding with Trump’s visit to Riyadh. The Saudi Data and Artificial Intelligence Authority (SDAIA) formalized partnerships with PureStorage, DataDirect Network, Wika.io, and Palo Alto Networks. These agreements aim to strengthen the Kingdom’s AI infrastructure, enhance cybersecurity, and accelerate the development of locally governed digital platforms.
President Donald Trump takes part in a U.S. - Saudi investment forum at the King Abdul Aziz International Conference Center, Tuesday, May 13, 2025, in Riyadh, Saudi Arabia. (Official White House Photo by Daniel Torok)
The Digital Government Authority (DGA) also signed a major MoU with Oracle to expand collaboration in cloud services and digital infrastructure. According to the DGA, this partnership will “enhance digital awareness among government employees,” improve citizen-facing services, and strengthen Saudi Arabia’s ambitions to become a regional leader in digital governance. The agreement was described as a “model of constructive collaboration” and a pillar of Saudi Arabia’s long-term goal to diversify its economy beyond oil.
Other deals announced during the tour included a $14.5 billion aircraft order from Etihad Airways for Boeing jets, new upstream energy investment commitments by ADNOC and U.S. firms like ExxonMobil and Oxy, and a broader plan to increase UAE investments in U.S. energy projects from $70 billion to $440 billion by 2035. Yet unlike previous visits centered on energy or defense, this tour emphasized technology (particularly AI) as the new cornerstone of Gulf-U.S. relations.
Donald Trump departs the King Abdul Aziz International Conference Center, Tuesday, May 13, 2025, en route to the Ritz-Carlton in Riyadh, Saudi Arabia. (Official White House Photo by Daniel Torok)
Trump’s delegation included senior U.S. business leaders from the tech, aerospace, and energy sectors, sending a clear signal that the administration views Gulf partnerships not through the lens of charity or alliance maintenance, but as joint ventures in the pursuit of digital and economic leadership. Sources close to the administration noted that many of these deals were months in the making, and the presidential trip served as the final push to seal them under high-level optics.
The geopolitical optics were equally striking. Trump met with the new interim president of Syria, announced the lifting of sanctions against Damascus, and proposed a U.S.-backed civil nuclear agreement with Saudi Arabia. But the lack of engagement with Israeli Prime Minister Benjamin Netanyahu, despite growing calls in Washington for a Gaza ceasefire, underscored a shift in the administration’s regional focus. Trump’s vision appears centered on transactional diplomacy: incentivizing regional stability and economic reform through access to cutting-edge technology.
Going Deeper
What sets this visit apart from previous presidential tours is the strategic focus on artificial intelligence and technology diplomacy. Rather than simply reinforcing military alliances or energy trade, the Trump administration prioritized the formation of tech-oriented alliances that tie AI access to geopolitical alignment. The delegation accompanying Trump included senior tech executives, defense contractors, and investment leaders, reflecting the transactional, business-first tone of the tour.
This realignment has global reverberations. Rather than removing the Gulf from the U.S.-China tech rivalry, it embeds the region more deeply within it. The UAE and Saudi Arabia may now appear to lean toward Washington on AI and chip access, but their broader economic and strategic ties with China, through BRICS membership, expansive trade relationships, and ongoing cooperation in infrastructure and energy, ensure that their alignment remains fluid. The decision to secure U.S. semiconductors signals a recalibration, not a rupture. Far from exiting the rivalry, the Gulf is positioning itself as a critical arena where the competing visions of U.S. and Chinese tech influence will play out, in AI infrastructure, data governance, and digital sovereignty. In this sense, the Gulf remains at the center of the geopolitical chessboard, not merely as a player choosing sides, but as a terrain where both sides are actively competing for dominance.
For Saudi Arabia, the agreements represent not just commercial gain but a strategic alignment in the global tech rivalry. The deals with Oracle and SDAIA signal a decision to deepen ties with the U.S. digital ecosystem over China’s, effectively choosing sides in the broader contest for AI leadership. Beyond the hardware, these partnerships focus on building institutional capacity, boosting AI literacy, embedding digital tools into public services, and positioning the Kingdom to leapfrog legacy systems and emerge as a regional AI hub under a U.S.-aligned framework.
These developments also dovetail with broader Gulf aspirations to lead on digital transformation and regional influence. Trump’s quiet diplomacy around Syria and Iran, coupled with Saudi Arabia’s rising centrality in energy and tech, suggests the emergence of a Sunni-led digital order, anchored in Riyadh, Abu Dhabi, and Doha, willing to align with Washington’s AI security framework in exchange for access to cutting-edge technology.
President Donald Trump delivers remarks at the U.S. - Saudi investment forum at the King Abdul Aziz International Conference Center, Tuesday, May 13, 2025, in Riyadh, Saudi Arabia. (Official White House Photo by Daniel Torok)
Conclusion
Trump’s 2025 Gulf tour was more than a diplomatic roadshow; it was a recalibration of the Middle East’s role in the AI age. By tying tech access to trust and transparency, the U.S. is making clear that future geopolitical influence will hinge not just on territory or trade, but on compute power, data policy, and who gets to train the next generation of large language models. For Saudi Arabia and the UAE, the message is clear: to lead in the new digital order, nations need chips, cloud, and credibility. The Gulf, it seems, now has all three.
Published by Basilinna Institute. All rights reserved.