Saudi Arabia has made a bold commitment: its burgeoning tech ambitions will proceed without Huawei. Why? To gain access to the highly coveted Nvidia GPUs and kickstart a sovereign AI revolution.
Let’s take a deep dive into why this was a necessary move and what it means for the global AI race.
A Quick Backstory
Saudi Arabia is known for one thing above all: petroleum (otherwise called black gold). It is one of the world’s largest producers and exporters of petroleum. And this has given it immense global economic and political influence.
However, in April 2016, Saudi Vision 2030 was officially proposed and launched by Saudi’s Crown Prince Mohammed bin Salman.
Saudi Vision 2030
Vision 2030 is a strategically reduces Saudi’s dependency on oil and diversify its economy. It builds on three main pillars:
- A vibrant society (by ensuring the quality of life and strengthening the country’s national identity)
- A thriving economy (by creating a globally competitive, diversified, and sustainable non-oil economy)
- An Ambitious Nation.
AI and Saudi Vision 2030
While Vision 2030 does not explicitly mention AI, it will serve as a core strategic asset that will aid its realization. How? By embedding AI into the Kingdom’s national infrastructure. Think AI-powered economy.
According to reports, AI could potentially contribute $135 billion to the Saudi economy by 2030. To achieve this goal Saudi has been seen investing heavily in infrastructure, R&D, and skills development. Some of its notable steps include:
- The establishment of the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019
- Launching HUMAIN, backed by the PIF, in May 2025
- The NEOM giga-project (a planned futuristic region spanning over 26,500 square kilometers, powered by 100% renewable energy).
As crucial as a suitable infrastructure is to an AI project, without chips (semiconductors/GPUs), it cannot be operational. Here enters the need for Nvidia GPUs.
Why Is Saudi Sidelining Huawei?
During the launch of HUMAIN, many American technology companies graced the occasion. However, one event was most notable during the launch. It was the agreement between Saudi and Nvidia for 18,000 Blackwell chips for the first phase of the project.
The goal for HUMAIN? To deploy as many as 400,000 chips by 2030, according to Tareq Amin, head of Humain. To get more not just from Nvidia, but from other American tech companies, they have to remove any/all factors that could rescind the deal.
Huawei, a Chinese tech giant, has long been under the scrutiny of the US government. In 2019, the company was blacklisted in the US and has recently been facing allegations of espionage.
Also, with the rising trade tension between the US and China, knowing whom to partner with is a huge factor. Hence, a partnership between Saudi and Huawei will raise a lot of red flags.
Why? The US doesn’t trust Huawei/China and would want to avoid any occasion where its tech can be accessible to Huawei. In order to avoid scrutiny, Saudi Arabia had to cut ties with Huawei.
Implications of This Move
By doing this, Saudi is raising a white flag to the US and also fostering trust. Potentially due to this “trust,” export controls might be freer, which could lead to billions in exports. This isn’t an anti-China movement. It’s pragmatic diplomacy in a chip-starved world.
Saudi Arabia is substituting a strategic supply chain pledge for the licensing access from the US. As the global AI race intensifies, these pledges may become just as important as the chips themselves.
