Nvidia to Supply 18,000 AI GPUs to Saudi Arabia's State-Sponsored Data Centers Following Cancellation of Export Restrictions

Nvidia has announced that it will supply 18,000 AI GPUs to Saudi Arabia's new state-sponsored AI company, Humain. The decision was revealed by CEO Jensen Huang on Tuesday during the Saudi-US Investment Forum in Riyadh, coinciding with President Donald Trump’s visit to the country. According to CNBC and Bloomberg, these GPUs will be crucial in constructing a 500-megawatt data center. Huang expressed his excitement about the collaboration, emphasizing that Saudi Arabia’s abundant energy resources would enable significant advancements in AI. "I am so delighted to be here to help celebrate the grand opening, the beginning of Humain," Huang said. "It is an incredible vision for Saudi Arabia to build the AI infrastructure of your nation so that you can participate and help shape the future of this transformative technology." The timing of this announcement is noteworthy. Just days earlier, the Trump administration decided to abandon the AI Diffusion Rule, a controversial export control policy proposed in January. This rule was designed to curb the spread of AI technology to rival nations, implementing a three-tier system of restrictions. Under the original proposal, countries like Belarus, China, and Russia faced the strictest controls, while Saudi Arabia, among others, was classified in tier 2, limiting the number of AI components that could be exported. Now that these restrictions are being scrapped, Nvidia can proceed with its shipment without hindrance. This decision has broader implications, particularly for how international companies must navigate local data storage requirements in Saudi Arabia. The kingdom has mandated that personal and financial data be stored locally, forcing major tech firms such as Amazon, Google, and Oracle to invest in building data centers within the country to comply and remain competitive. Humain, launched on Monday, is wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. Chaired by Crown Prince Mohammed bin Salman, Humain aims to offer a wide array of AI services, products, and tools. This includes developing next-generation data centers, AI infrastructure, and cloud capabilities, along with advanced AI models and solutions. One of the company’s ambitious goals is to create one of the world’s most powerful multimodal Arabic language models. The launch of Humain and the cancellation of the AI Diffusion Rule signify a growing commitment from Saudi Arabia to establish itself as a leader in the global AI landscape. By partnering with leading tech companies like Nvidia, the kingdom hopes to leverage its natural resource wealth to drive innovation and economic growth in the technology sector. However, the move to mandate local data storage has sparked some controversy. Critics argue that it places additional burdens on international companies and may affect data privacy and security. Despite these concerns, the partnership between Nvidia and Humain underscores the strategic importance of AI in both the tech industry and geopolitics. As Saudi Arabia positions itself to play a more prominent role in AI development, it will be interesting to see how this collaboration evolves and what innovations it brings to the table. For the latest updates and insights on this and other tech news, follow Tom’s Hardware on Google News.