A White House Official said Tuesday that the United States does not need to block the global spread of its AI chips and technology to control national security risks, signaling a flexible approach toward sharing advanced technology to trusted allies such as Saudi Arabia.
When President Biden was in office, he tried to curb China’s progress in artificial intelligence by limiting access to powerful chips. However, President Trump is taking a different approach—one that encompasses offering US technology to countries on the condition that they avoid Chinese alternatives.
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David Sacks, the White House’s AI and crypto czar, signaled on the administration’s new stance only days after Washington announced plans to rescind and modify a previous regulation from the Biden era that would limit global access to artificial-intelligence chips.
“The Trump administration has just announced that we will be rescinding what’s known as the Biden diffusion rule… it literally restricted the diffusion or proliferation of American technology all over the world. (Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs.”
-Sacks said at the Saudi-U.S. Investment Forum
These comments imply how the United States is now looking to deepen tech ties with Middle Eastern partners investing heavily in AI infrastructure and aiming to position themselves as a hub of emerging technology outside the United States.
Before these comments were made, Saudi Arabia and its neighbors saw their access to US chips limited under the AI diffusion rules imposed during the Biden era. However, Trump officials deem this as “misguided”, touting that there is no risk with “a friend like Saudi Arabia.” The Biden-era controls were rescinded by the Department of Commerce on Tuesday.
“The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern.”
-David Sacks.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
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9. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that provides information technology and networking services. On May 13, the company announced that it will be joining Saudi Arabia’s AI startup HUMAIN’s alliance to build Saudi Arabia’s future AI Infrastructure. Cisco and G42 will be extending their strategic partnership to boost AI innovation across the United Arab Emirates (UAE) and the United States. Additionally, Cisco will also be collaborating with AIP (AI Infrastructure Partnership) to boost investment in data centers and AI infrastructure in the United States, as well as globally.
“The pace of AI innovation today is unprecedented, and yet, what we’re able to do today is just a fraction of what will be possible in just a few years. For countries, organizations, and industries, the time to invest in key infrastructure, AI safety and security, and new skill development is now. Cisco is developing the critical technologies of the AI-era, and we’re thrilled to be working across the Gulf to maximize their impact.”
-Jeetu Patel, EVP and Chief Product Officer, Cisco.
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider. On May 13, the company announced that it remains committed to the Kingdom of Saudi Arabia’s Vision 2030, a government program launched to transform Saudi Arabia into a “vibrant society,” a “thriving economy,” and an “ambitious nation”. Owing to US President Donald Trump, the vision is now gaining heavy traction. The $14 billion investment spanning over the next 10 years will offer some of the world’s best cloud and AI technology to the Kingdom, offering both economic advancement and innovation.
“Thanks to the decisive actions and strong leadership of President Trump and his administration, Oracle is providing the world’s most advanced cloud and AI technology to Saudi Arabia. Our expanded partnership with the Kingdom will create new opportunities for its economy, deliver better health outcomes for its people, and fortify its alliance with the United States, which will create a ripple effect of peace and prosperity across the Middle East and around the world.”
-Safra Catz, CEO, Oracle.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. Another US technology firm benefiting from US President Donald Trump’s tour of Gulf states is AMD. On May 13, the company announced a deal with AI startup Humain, which was recently launched by Saudi Arabia’s sovereign wealth fund. The agreement comprises building one of the “world’s most open, scalable, resilient, and cost-efficient AI infrastructure” to power global intelligence via a network of AMD-based AI computing centers. These will stretch from the Kingdom of Saudi Arabia to the United States. The parties will be investing up to $10B to deploy 500 megawatts of AI compute capacity over the next five years.
“At AMD, we have a bold vision to enable the future of AI everywhere – bringing open, high-performance computing to every developer, AI start-up and enterprise around the world. Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure. Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels.”
-Dr. Lisa Su, Chair and CEO, AMD.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On May 13, CEO Elon Musk made a big push for robotics in Saudi Arabia, including self-driving cars. While the company is yet to launch its robotaxi service to the public, it has announced its plans to launch a pilot of the service in Austin in June. Musk expressed his desire to bring robotaxis to Saudi Arabia as well, even though no specific timeline has been announced as yet. It must be noted that Uber is already laying the groundwork to launch autonomous vehicles later this year.
“Really you can think of future cars as being robots on four wheels, and I think it would be very exciting to have autonomous vehicles here in the Kingdom if you’re amenable.”
-Musk said to Abdullah Alswaha, Saudi’s Minister of Communications and Information Technology.
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On May 13, Reuters reported that the White House has revealed how a Saudi Arabian firm DataVolt will invest $20 billion in AI data centers and energy infrastructure in the United States. Moreover, Alphabet’s Google, Oracle Corp, Salesforce Inc., Advanced Micro Devices, and Uber will invest $80 billion in trailblazing transformative technologies in both countries.
A few days prior, Bloomberg reported how Salesforce had already begun building its team in Saudi Arabia as part of a plan to invest $500 million over the next five years. This plan aims to boost the adoption of artificial intelligence in the kingdom. According to Mohammed Alkhotani, senior vice president of Salesforce Middle East, the company is planning to open a regional headquarters in Riyadh and to hire up to 40 employees by year-end.
4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) is engaged in developing and operating proprietary technology applications. On May 13, Reuters reported that the White House has named several big tech firms that will be investing $80 billion in cutting-edge transformative technologies in both countries. One of them is Uber Technologies, Inc. Saudi Arabian leaders have already expressed their desire for autonomous vehicles to play a role in the country’s broader Vision 2030 modernization plans, aiming to reduce the reliance on oil. Last year, the country also released a regulatory framework on the adoption of self-driving cars. On Tuesday, Saudi Arabia’s Transport General Authority notified in a post on X that the agency had signed a memorandum of understanding with Uber to launch autonomous vehicles in the country.
“First autonomous vehicles expected to launch on the Uber platform with onboard safety operators in 2025.”
-Transport General Authority.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. Several US technology firms have announced artificial intelligence deals with the Middle East recently, one of which is Nvidia Corporation. The company has announced that it will sell hundreds of thousands of AI chips in Saudi Arabia. Notably, 18,000 of its newest “Blackwell” chips will go to AI startup Humain, recently launched by Saudi Arabia’s sovereign wealth fund, to be used in a 500 megawatt data-center project. The agreement also comprises further expansion with “several hundred thousand” additional chips possibly planned for delivery within five years.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On May 13, US President Donald Trump began his Gulf tour, kicking it off with the signing of a strategic economic agreement with Saudi Arabia. The White House revealed that Saudi Arabian firm DataVolt will invest $20 billion in AI data centers and energy infrastructure in the United States. Alphabet’s Google, along with other companies such as Salesforce Inc. and Advanced Micro Devices, will invest $80 billion in cutting-edge transformative technologies in both countries.
In a press release from Google Cloud, the company announced that its $10 billion investment in partnership with PIF will work along with the Saudi technology company Humain to construct an AI hub. According to an Access Partnership study commissioned by Google Cloud, the AI hub will offer an economic benefit of $35 billion to the United States and also support roughly 11,000 American jobs by 2040.
“We are proud of this partnership for a global AI hub that will accelerate the application of AI to deliver innovation, economic growth and societal benefits to Saudi Arabia and to global companies doing business in the region. In addition, together we will create highly-skilled jobs and deliver AI training programs to open new, rewarding career pathways for Saudis. We acknowledge and are grateful for the engagement and policies of both the Trump Administration and the leadership of the Kingdom of Saudi Arabia who are enabling strong execution and the benefits for both countries.”
-Ruth Porat, President and Chief Investment Officer of Alphabet and Google.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On May 13, Amazon Web Services (AWS) and HUMAIN, Saudi Arabia’s newly created AI startup, announced plans to invest $5 billion-plus in a strategic partnership to build an “AI Zone” in the country. The AI Zone will comprise dedicated AWS AI infrastructure and servers with world-class semiconductors, UltraCluster networks for faster AI training and inference, AWS services, and AI application services that will help Saudi Arabia become a leading force in the realm of artificial intelligence.
AWS is presently building an AWS infrastructure region in Saudi Arabia, set to become available in 2026, where Amazon is investing US$5.3 billion to develop this new region. Meanwhile, the newly announced AI Zone is an additional investment made in the Kingdom. The collaboration will allow HUMAIN to develop AI solutions using AWS technologies and also partner with AWS on the development of a unified AI agent marketplace. The agreement is set to boost Large Language Models (LLMs), including Arabic Large Language Models (ALLaM), which will allow organizations and industries to adopt artificial intelligence widely.
“This collaboration to build an AI Zone in Saudi Arabia will enable innovations across all industries using AWS’s advanced AI offerings, and reflects our commitment to support Saudi Arabia’s Vision 2030. Together, we will empower customers with cost-effective and secure cloud technologies, fuel innovation and economic growth across the nation, and enable HUMAIN to appeal to customers globally.”
-Matt Garman, CEO, Amazon Web Services.
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