Saudi Arabia Strikes Massive Deals With NVIDIA and AWS in AI

Written by Joseph Nordqvist

Published: 13:03, May 15, 2025

Saudi Arabia is pouring oil revenues into artificial intelligence, striking headline deals with NVIDIA and Amazon Web Services that together exceed $10 billion and aim to vault the Kingdom into the top tier of AI nations.

At the center of the push is HUMAIN, a new state-backed company (also detailed by AWS), charged with delivering Crown Prince Mohammed bin Salman’s Vision 2030 promise of a diversified, knowledge-based economy.

$10 bn + committed across two headline deals
500 MW of data-center capacity planned
Arabic LLMs (ALLaM) firmly on the roadmap

Sovereign “AI factories” with NVIDIA

HUMAIN’s flagship agreement buys 18,000 next-generation Blackwell GPUs to build the Kingdom’s first AI supercomputer and a network of data-center “AI factories” totalling 500 MW over five years, as announced by NVIDIA on May 14, 2025. NVIDIA chief Jensen Huang, whose company detailed the plans, called AI “essential infrastructure for every nation” during a high-profile U.S.-Saudi forum in Riyadh that week, according to Quartz.

“AI, like electricity and the internet, is essential infrastructure for every nation.” — Jensen Huang

The deal goes beyond hardware: NVIDIA will also help train thousands of Saudi developers, scientists and engineers, while 5,000 additional GPUs will power a government-run “sovereign AI factory” for smart-city and public-sector projects overseen by the Saudi Data & AI Authority (SDAIA). Aramco Digital will adapt NVIDIA platforms for energy and industrial uses.

A $5 billion AWS “AI Zone”

Running parallel is a $5 billion cloud pact with AWS, announced May 13, 2025, to create an in-country “AI Zone.” The cluster will host Amazon’s full machine-learning stack, including generative-AI services such as Amazon Bedrock and the coding assistant Amazon Q, all delivered from Saudi soil. A Generative AI Innovation Center will mentor local start-ups and ministries, and the partners have earmarked development of Arabic-language large models (ALLaM) as a priority. The Zone builds on AWS’s separate plan to open a full Saudi cloud region by 2026.

Image by Tung Nguyen from Pixabay

Why it matters

  • Market shockwaves: News of the NVIDIA tie-up added about $300 billion to the chipmaker’s market value in two trading days, Quartz reported on May 14, 2025; Wedbush Securities reckons the Saudi AI build-out could unlock $1 trillion in global opportunity, as noted by Quartz.
  • Talent transfer: Government agencies, universities and industry players are embedding staff in the projects to lock in skills rather than simply import tech, a key component of both the NVIDIA and AWS partnerships.
  • Digital sovereignty: By hosting infrastructure and training models at home, Saudi Arabia hopes to run critical AI services, and Arabic content, on its own terms.

Timeline:

May 2025 – Deals Announced 2026 – AWS Region Live 2027 – First AI Factory Online 2030 – 500 MW Capacity Target

The long game

Officials frame the programme as a direct investment of petro-dollars into “new-oil” data assets. “This positions the Kingdom as a leader among data- and AI-driven economies,” said SDAIA president Dr Abdullah bin Sharaf Alghamdi in NVIDIA’s announcement, calling the move integral to Vision 2030.

However, turning big capital outlays into sustainable jobs and exportable intellectual property will require regulatory support and an innovation culture the Kingdom is still cultivating. Yet the scale and speed of the initiative signal that Saudi Arabia intends to compete, not merely consume, in the global AI race.

If the strategy holds, the desert kingdom could soon host one of the world’s densest concentrations of AI compute, as envisioned in its NVIDIA partnership.

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Key Takeaway

Saudi Arabia appears to be converting oil wealth into one of the world’s densest AI compute hubs, as noted by the recent deal with NVIDIA and AWS.

Joseph Nordqvist Avatar

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