Saudi Arabia anticipates obtaining high-performance chips from U.S. chipmaker Nvidia within the next year, according to Abdulrahman Tariq Habib, Deputy CEO of the Saudi Data and AI Authority’s strategy management office. Despite the strict export controls imposed by the United States, Habib expressed optimism during an interview with CNBC at the GAIN summit in Riyadh. The chips in question, Nvidia H200s, are renowned for their use in OpenAI’s GPT-4o, enabling advanced artificial intelligence models.
The acquisition of these chips would have significant implications for Saudi Arabia. Habib emphasized that it would not only enhance business relations between Saudi Arabia and the U.S., but also bolster the kingdom’s computational capabilities. Over the past three years, Saudi Arabia has made substantial investments in building human and data capacity, aiming to become one of the leading countries in data analysis.
Saudi Arabia’s commitment to developing a robust AI ecosystem is evident in its plans to have AI contribute 12% to its gross domestic product by 2030. The $925 billion Public Investment Fund, under the Vision 2030 initiative led by Crown Prince Mohammed bin Salman, will spearhead this investment. In line with these efforts, the PIF has been in discussions with American venture capital firm Andreessen Horowitz to establish a $40 billion fund dedicated to AI investments.
The potential easing of U.S. chip export rules for Saudi Arabia signifies the positive collaboration between Riyadh and Washington in the AI domain. Habib highlighted the understanding of Saudi Arabia’s emergence as an AI powerhouse and its productive partnership with the U.S. However, the Biden administration’s restrictions on chip exports, driven by national security concerns, have posed challenges. These restrictions, which require a special U.S. government license for exporting advanced semiconductors, were expanded in May to include several Middle Eastern countries, including Saudi Arabia and the United Arab Emirates.
The Saudi government is reportedly working to address U.S. security concerns regarding its relationship with China, while also keeping open the possibility of cooperation with Beijing if the U.S. denies chip exports. The Semafor report suggests that Saudi Arabia aims to strike a balance between meeting Washington’s demands and maintaining its ties with China, given the latter’s status as Saudi Arabia’s largest trading partner and significant investor in Vision 2030.