Trump’s Gulf Tour Shifts Global Tech Diplomacy and Raises Stakes for the Global South

DOHA, QATAR — May 15, 2025 — President Donald Trump’s four-day diplomatic tour through Saudi Arabia, Qatar, and the United Arab Emirates has triggered a seismic shift in global technology and defense dynamics.

Trump’s transactional approach to foreign policy found a natural counterpart in the monarchs of the Persian Gulf, who recognize that the former president thrives on deal-making—be it business, security, or even the gifting of a 747. With agreements totaling over $700 billion, the visit positions the Gulf as a strategic hub for data centers, artificial intelligence (AI), and high-tech defense systems closely aligned with U.S. interests.

Inside the Forum Powering Saudi Arabia’s $600 Billion AI Bet

In Riyadh, the unveiling of a U.S.-Saudi AI alliance worth $600 billion marked a decisive shift. Crown Prince Mohammed bin Salman, hosting the Saudi-U.S. Investment Forum alongside Trump, declared the Kingdom’s transition from a predominantly oil-based economy to one driven by innovation and digital transformation. 

"Moving from an energy-based economy, today we fuel roughly 20% of the global mix... Moving to the digital economy, this is a new era. Saudi Arabia’s economy will be driven by innovation, not oil." Mohammed bin Salman remarked. 

President Trump emphasized the strategic significance of the agreement, positioning it explicitly as part of America's wider geopolitical strategy: "This is a new industrial revolution—and the United States will lead it with our friends and allies."

David Sacks, appointed as Trump’s AI envoy, made clear the administration's reversal of previous Biden-era policies restricting tech exports. 

"President Trump gave me one task—win the AI race for the United States," he stated, adding, "And we’re doing that by expanding, not restricting, our partner ecosystem."

NVIDIA CEO Jensen Huang announced a major deployment of GPU infrastructure designed to support Saudi Arabia’s ambitious goal of reaching 1.9 gigawatts of AI data center capacity by 2030. "We’re moving from generative to agentic AI—where machines reason, solve, and act," Huang said. "The next leap is physical AI: AI that understands the world and lives in it."

Tesla CEO Elon Musk revealed plans for comprehensive Starlink satellite coverage across Saudi Arabia, intended as foundational infrastructure for nationwide autonomous systems. "Starlink will connect every edge of the Kingdom—land, sea, and sky," Musk declared. Tesla also showcased its Optimus humanoid robots, emphasizing the role of robotics in future infrastructure.

AMD CEO Lisa Su summarized the broader economic intent of the alliance succinctly: "This is not about chips. It’s about reshaping the infrastructure that powers the global economy."

Qatar’s Aerospace and Defense Leap

Trump’s state visit to Qatar was equally groundbreaking, marked by Qatar Airways’ historic $96 billion Boeing aircraft order—the largest widebody order in Boeing’s history. "This is a great day for Boeing, for America, and for Qatar," Trump remarked alongside Emir Sheikh Tamim bin Hamad Al Thani. The Emir emphasized the depth of trust embedded in these agreements, noting that they drive 

"innovation and security for both nations."

Qatar’s additional commitments included $38 billion in defense investments focused on cybersecurity and drone capabilities at Al-Udeid Air Base, home of U.S. Central Command, and a $1 billion quantum computing joint venture. The strategic dimension was underscored by Trump’s appeal to Qatar’s leadership to mediate regional tensions, particularly regarding Iran: "I hope you can help me with the Iran situation. It’s a perilous situation, and we want to do the right thing."

Yet controversy shadowed the success of the deals. Qatar’s offer of a $400 million Boeing 747-8 as a temporary Air Force One prompted criticism from U.S. lawmakers. Senate Democratic Leader Chuck Schumer described it as "a blatant violation of the Constitution and a national security risk," citing surveillance concerns tied to Qatar’s relations with Al Jazeera and Hamas.

UAE Secures Landmark $1.4 Trillion AI Campus and Chip Agreement with Trump Administration

On Thursday, in the final leg of his Gulf presidential tour, President Donald Trump announced a groundbreaking set of agreements with the United Arab Emirates (UAE) totaling over $200 billion, highlighted by a significant expansion of cooperation in artificial intelligence.

Central to these deals is a historic preliminary agreement that will allow the UAE to import 500,000 of Nvidia’s most advanced AI chips per year starting immediately. This initiative is a crucial step in the UAE’s ambition to position itself as a global center for AI innovation. The massive inflow of high-tech components will significantly enhance the country's capability to develop sophisticated data centers essential for advanced AI modeling, despite raising national security concerns among some sectors within the U.S. government.

Meeting in Abu Dhabi with UAE President Sheikh Mohamed bin Zayed Al Nahyan, Trump expressed strong confidence in the future of bilateral relations: "I have absolutely no doubt that the relationship will only get bigger and better."

During their discussions, Trump referenced a substantial UAE pledge previously outlined in Washington: "Your wonderful brother came to Washington a few weeks ago, and he told us about your generous statement as to the 1.4 trillion," referring to the UAE's commitment to invest $1.4 trillion over the next decade into the U.S. economy.

This ambitious, decade-long commitment will finance extensive data-center construction, the importation of cutting-edge AI chips, and deeper partnerships with prominent American technology firms. Nvidia, a key U.S. chipmaker, is prominently positioned among these potential collaborations.

The newly announced agreement signals a decisive shift from the Biden administration's approach, which previously enforced strict export controls on advanced chips due to fears of technology diversion to China. The Trump administration now argues that security risks can be effectively mitigated by mandating U.S. operational oversight at UAE-based data centers. The White House underscored these safeguards, confirming that the UAE has agreed "to invest in, build, or finance U.S. data centers that are at least as large and powerful as those in the UAE."

For the UAE, already investing billions to become a global AI hub, the deal represents a significant diplomatic victory, all the while carefully balancing its long-standing economic relationship with China, its largest trading partner.

The Stakes for Middle Powers

Saudi Arabia’s AI ambitions are now measured in computational power—not just crude oil. As the Kingdom builds a sovereign compute infrastructure backed by U.S. hardware and political alignment, it is reshaping the AI-industrial complex in real time.

For the Global South, these developments carry significant implications. Nations across Asia, Africa, and Latin America now face heightened pressure to establish independent technological capabilities and strategic alignments. Countries such as Australia, Singapore, and Thailand, already actively developing their AI infrastructure, see the stakes raised dramatically by this Gulf-U.S. alliance. 

While Australia progresses with significant expansions by AirTrunk, NextDC and CSIRO's AI initiatives, Singapore leads Southeast Asia in AI readiness but faces inherent scale limitations. Thailand, despite notable investments, remains far behind Singapore’s substantial AI venture capital influx.

Trump’s tour sends an unmistakable message: sovereign technological capacity and strategic partnerships in AI and computing are not mere aspirations; they have become survival imperatives. For countries throughout the Global South, the choice has never been clearer—build independent digital sovereignty or remain on the periphery of the emerging global tech order.

As the world watches closely, a critical question emerges: Who will join this new table of technological diplomacy—and at what cost?