As Artificial Intelligence Becomes the Core of Global Geostrategic and Technological Competition
With artificial intelligence becoming the core area of global geostrategic and technological competition, U.S. President Trump commenced his visit to three Middle Eastern countries in mid-May, signing economic and military agreements totaling over a trillion dollars with Saudi Arabia, Qatar, and the United Arab Emirates. This visit not only focused on traditional diplomacy and military sales but also collaborated with American tech giants including NVIDIA, AMD, Open AI, and Tesla to promote large-scale AI industry investments, demonstrating the U.S. intent to dominate the development of AI in the Middle East.
At the same time, Trump announced a relaxation of some AI chip export restrictions, eliciting significant attention from the outside world. Although this move is expected to strengthen the formation of a new U.S.-Middle East AI technology alliance, it also carries potential risks, such as the possibility of AI chip technology flowing to China and the proliferation of military applications, leading to sharp internal divisions within Washington regarding Trump’s new AI policies.
According to analysis by Japanese media ANN, Trump’s visit can be seen as a clever operation of “technology diplomacy,” aiming to lead American companies to make large-scale investments in the Middle Eastern AI sector, thereby enhancing U.S. influence while attempting to reduce Middle Eastern countries’ reliance on China, thus reshaping the pro-U.S. geopolitical landscape in the region without needing to mobilize significant national funds. The following is a comprehensive report.
U.S. Signs Major Investment and Military Sales Agreements with Middle East
Beginning May 13, 2025, President Trump embarked on his visit to three Middle Eastern countries, starting in Saudi Arabia, where he immediately signed a series of significant economic and investment agreements.
Tech Giants Join the Visit, AI Becomes the Focus of Cooperation
During this visit, Trump was accompanied by major American tech giants, including NVIDIA, Tesla, Google, Oracle, Salesforce, AMD, and Uber, announcing a total of $80 billion in tech investments, clearly demonstrating support for Saudi Arabia’s AI industry.
According to U.S. media Politico, the most notable announcement was from NVIDIA, which plans to establish a “Future AI Factory” in Saudi Arabia in collaboration with a government-affiliated fund. Additionally, AMD announced a strategic partnership with Saudi Arabia’s newly established AI company, Humane.
U.S. Signs Major Agreements with Qatar and the UAE
Trump’s visit to the Middle East also facilitated significant agreements with Qatar and the UAE. The U.S. reached an agreement valued at $243.5 billion with Qatar, covering aircraft procurement and energy cooperation, with Qatar Airways set to order up to 210 aircraft from Boeing. On the 15th, Trump also announced a $200 billion agreement with the UAE.
Trump Revokes Biden’s Chip Export Restrictions, Adjusts to Individual Negotiation Policy
On the same day Trump visited Saudi Arabia, the U.S. government announced it would revoke some of the Biden administration’s export restrictions on advanced AI chips.
According to sources, the U.S. plans to stop uniform export controls and shift to “individual negotiations” with various countries, adjusting the chip export classification system implemented by the Biden administration in early 2025, when countries subject to global export controls were divided into three groups.
- Group one: Includes Japan, South Korea, and Taiwan among 19 countries, which are nearly unrestricted by export limits.
- Group two: Includes Saudi Arabia, the UAE, India, and Brazil among 120 countries, subject to quota controls.
- Group three: Includes China, Russia, North Korea, and Iran among 24 countries, with a comprehensive export ban.
U.S. Concerns Over AI Chip Exports to the Middle East
Despite the policy relaxation, there are still concerns within the U.S. government regarding the security risks of AI chip exports to the Middle East. According to a Bloomberg report on May 16, some officials worry that these chips could ultimately end up in China, bolstering its military and technological capabilities. This concern arises from Huawei’s recent aggressive investment in AI chip development. The U.S. Department of Commerce has clearly stated that any confirmed use of Huawei AI chips, regardless of the country, will violate U.S. export control regulations.
Strategic Adjustment in the U.S.-China Tech War
The U.S.-China technology conflict has been ongoing since the Trump 1.0 era. In August 2018, Trump signed the “National Defense Authorization Act,” restricting trade with Chinese companies on national security grounds. In December of that year, the arrest and extradition of Huawei CEO Meng Wanzhou in Canada rapidly deteriorated U.S.-China relations. Since then, the U.S. has continued to strengthen export controls against Huawei, prohibiting the company from obtaining key components and software for AI.
On April 27, 2025, the Wall Street Journal reported that Huawei has begun testing its self-developed AI chip Ascend 910D, which is expected to outperform NVIDIA’s flagship product H100. Meanwhile, the Chinese government is actively promoting the development of its AI technology and encouraging companies to procure domestically produced AI chips.
Current Security Concerns Regarding U.S. Exports of Advanced AI Chips to the Middle East
The current security concerns regarding U.S. exports of advanced AI chips to the Middle East primarily focus on several aspects:
- Risk of technology outflow, as AI chips could potentially be transferred to China.
- Risk of proliferation of military applications, as advanced AI chips (e.g., NVIDIA H100, A100) possess extremely high computational capabilities applicable to military automation, drones, battlefield simulations, weapon system optimization, and surveillance technologies. Some U.S. officials worry that if these chips are used by countries like Saudi Arabia or the UAE to develop military AI, it could escalate arms competition and ultimately allow the Middle East to provide technical support to China or its allies.
The current U.S. security concerns regarding AI chip exports to the Middle East are not only about technology potentially flowing to China but also involve increasingly close collaborations between countries like Saudi Arabia and Chinese tech companies, particularly Huawei. In the Middle East, Chinese companies have deeply engaged in cloud and 5G infrastructure. If U.S. high-end chips flow into data centers co-constructed with Chinese technology, the Middle East could inadvertently become a “relay station” in the U.S.-China tech competition.
These concerns highlight the deepening competition between the U.S. and China across multiple dimensions of AI technology, global supply chains, and military applications, with the Middle East emerging as a new battleground in this AI technology game. Consequently, there is ongoing controversy within the U.S. government regarding the Trump administration’s relaxation of chip export policies to the Middle East.
Furthermore, Japanese media analysis indicates that Trump’s Middle East tour showcases a unique strategy of “technology aid diplomacy,” cleverly courting Middle Eastern allies through leading American tech companies to invest heavily without directly using national funds, while simultaneously exerting pressure on China.
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