BRICS+ Series: The Reality Behind Saudi Arabia’s AI Push

The visit showcased a kingdom eager to accelerate its technological transformation and a US government signalling openness to strategic economic partnerships. But behind the celebratory tone, analysts point to lingering uncertainties: Which deals will materialise, how quickly will projects move from paper to reality, and how sustainable is this momentum in a shifting global economic landscape?

AI Takes Centre Stage

Artificial intelligence dominated the trip’s agenda. The Nvidia approval was only one piece of a broader push. High-profile US tech leaders—including Elon Musk’s xAI and chip makers AMD and Qualcomm expressed renewed interest in collaborating with Saudi companies both in the US and within the kingdom.

For Riyadh, these partnerships represent more than symbolic victories. Saudi Arabia sees AI as a cornerstone of its Vision 2030 programme, which aims to diversify the economy away from oil and position the kingdom as a global innovation hub. Access to top-tier chips and the backing of American tech giants could significantly accelerate Saudi capabilities.

Yet while enthusiasm is strong, the trajectory of collaboration will depend heavily on regulation, delivery timelines, and the speed at which AI can be embedded across Saudi industries. Many of the agreements announced this week lacked concrete milestones, leaving observers cautious.

Big Numbers, Small Details

Investment was another headline driver. The crown prince pledged to increase Saudi investments in the United States from $600 billion to a striking $1 trillion. It is an ambitious target, especially at a time when oil prices remain soft and the kingdom faces rising domestic spending commitments tied to mega-projects like NEOM.

Economic experts note that such large figures often span long timelines. Without clarity on the timeframe, it is difficult to measure the feasibility of the pledge. The same applies to US President Donald Trump’s claim that $270 billion in new deals were signed in just one day. These announcements may carry political appeal but remain hard to independently verify.

As macroeconomic strategist Rachel Ziemba explains, both countries are engaged in a bit of “political theatre.” Each wants to signal strength, partnership, and investment power. But both also face domestic pressures to keep capital at home—raising questions about how far cross-border investment can realistically expand.

One way forward, according to analysts, may be co-investment structures that allow both countries to claim mutual benefit while maintaining control over where money flows.

Partnership Momentum, with Caveats

Saudi Arabia’s investment minister, Khalid Al-Falih, highlighted that existing partnerships between US and Saudi companies already total $575 billion. For the US, the kingdom offers access to one of the world’s fastest-growing economies. For Saudi firms, the attraction lies in American innovation and advanced technologies.

Beyond tech, the leaders discussed collaboration in energy, mining of critical minerals, and defence. A bilateral defence pact, potential sales of F-35 fighter jets, and a framework for civilian nuclear cooperation were all floated.

However, none of these major agreements came with timelines, financing structures, or implementation guidelines. The commitments sound promising, but each requires significant consultation, especially with the US Congress, which must approve any long-term defence or nuclear cooperation.

Past examples offer caution. Efforts to sell F-35 jets to the UAE faltered under both the Trump and Biden administrations due to concerns over sensitive technology ending up in China’s hands. There is no guarantee the Saudi agreements will avoid similar political hurdles.

The Path From Announcements to Action

For now, the trip has renewed energy around the US–Saudi partnership at a moment when global alliances are shifting and competition for technological leadership is intensifying. But experts emphasise that the true test will come in the months ahead.

Will Nvidia’s chips arrive on schedule? Will joint AI labs open? Will the defence pact gain traction in Congress? And will investments move from announcements to actual capital flows?

Mona Yacoubian of the Center for Strategic and International Studies sums up the prevailing sentiment: the visit brought optimism, but “the jury is still very much out” on what will ultimately be delivered.

What is clear is that Saudi Arabia has positioned itself as a central player in the global AI race—and the United States, despite its own domestic priorities, seems willing to engage. Whether the fanfare of this visit becomes lasting policy and economic transformation remains an open and closely watched question.

Written By:

Chloe Maluleke

Associate at BRICS+ Consulting Group 

Russia & Middle East Specialist

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