Trump invests in tech and Saudi-backed AI to boost US economy
President Donald Trump is increasingly relying on the tech sector and the advancement of artificial intelligence to fulfill his economic agenda, a fact highlighted this week during his meeting with Saudi Arabia’s Crown Prince Mohammed bin Salman. The crown prince has pledged to invest $1 trillion with US companies, a commitment that primarily focuses on leveraging Saudi Arabia’s oil and natural gas reserves to transform his nation into an AI data hub. “We will work closely with friends and partners like those in this room to build the largest, most powerful, most innovative AI ecosystem in the world,” Trump said. Sitting in the front row of the audience at the Kennedy Center were Nvidia co-founder Jensen Huang and tech billionaire Elon Musk. Trump claimed responsibility for the recent investments and stock market performance this year, attributing both to the advancements in AI development. Despite Trump’s assertions that his tariffs are fostering new investments, a significant portion of that foreign capital is being directed towards data centres to meet AI’s computing requirements or the power facilities necessary to operate those data centres.
The president described the stock market gains as amazing; however, leading stock indices experienced a decline on Tuesday amid increasing concerns regarding the potential for AI companies to be contributing to a larger financial bubble. Political risks are increasing for Trump, particularly if the AI expansion leads to higher utility prices for American consumers or if the jobs he has pledged in this sector do not come to fruition. The consultancy Oxford Economics released an analysis Tuesday stating that AI investments “offset the extreme uncertainty” in the US economy this year, a situation exacerbated by Trump’s tariff hikes that have elevated inflation and potentially contributed to a slowdown in hiring. The firm observed that AI companies are increasingly depending on debt to finance their growth in the sector, indicating a potentially more precarious phase for the boom in the coming year. The competition for investments is reflected in Saudi Arabia’s commitments, which increased from $600 billion during Trump’s visit in May to $1 trillion when Prince Mohammed visited the White House on Tuesday.
Trump stated that he has already urged Prince Mohammed to raise that figure, noting that he lobbied the de facto ruler of Saudi Arabia backstage prior to their appearance at the Kennedy Center. As we were capturing the moment, I remarked, ‘Could you make it $1.5 trillion?’ Trump responded. So he has some considerations ahead of him. During the forum, when Stephen Schwarzman was inquired about the most significant growth narratives at the summit, the billionaire investor remarked, “AI and, you know, power. Those are the two things that we spend a lot of time on,” he said. “At Blackstone, my company, we’re the largest developer, the largest owner, of data centres in the world. And this is a really explosive area.” Tareq Amin stated that his Saudi-backed AI company was established during Trump’s visit to the Middle Eastern nation in May. His company recognized the potential to establish data centres and AI infrastructure by capitalizing on Saudi Arabia’s energy production and US technology. Indeed, it is an ambitious, crazy thing, Amin stated with assurance.
Musk, whose xAI company has a chatbot called Grok, predicted that AI and robots would eventually allow work to become optional for human beings, that money would become irrelevant and poverty would cease to exist. “AI and humanoid robots will actually eliminate poverty,” said Musk, the head of Tesla and SpaceX. He stated that robots would lead to wealth for all. Nvidia’s Huang, sharing the stage with Musk, refrained from making a similarly audacious prediction. He stated: “Everybody’s jobs will be different.” I believe that is undoubtedly the case. Huang addressed the audience prior to the $4.5 trillion computer chip company revealing its quarterly earnings on Wednesday. The company subsequently announced robust earnings for its third quarter, with net income surging 65 percent compared to the previous year. During Trump’s remarks, the president inquired of Huang whether any other nation could rival its Blackwell chip, which is facilitating a significant portion of AI development. “Not yet, sir,” said Huang from the front row.
