The United States and Saudi Arabia have inked a landmark defense agreement valued at nearly $142 billion, marking one of the largest bilateral security deals in recent years. Under the accord, Riyadh is set to receive state-of-the-art American defense systems and services, as Washington moves to reaffirm its longstanding strategic partnership with the Gulf kingdom. This arms package is part of a wider $600 billion Saudi commitment to invest in American industries, according to a White House fact sheet.
The agreement comes on Tuesday as the U.S. President Donald Trump visited Prince Mohammed bin Salman in Riyadh.
The deal extends beyond defense, including notable commercial contracts: General Electric will supply Saudi clients with gas turbines and energy solutions worth $14.2 billion, while Boeing has secured a $4.8 billion commitment for its 737-8 passenger jets. The agreements reflect growing economic collaboration and signal an intensified U.S. pivot to the Middle East amid global geopolitical shifts.
In parallel to the bolstered U.S.-Saudi partnership, the Trump administration is reportedly reviewing a proposal that could permit the United Arab Emirates to purchase over a million of Nvidia’s most advanced AI chips, far exceeding existing export restrictions imposed during the Biden administration. Sources familiar with ongoing negotiations told Bloomberg News that the plan, if approved, would allow the UAE to import up to 500,000 Nvidia chips annually through 2027.
According to those briefed on the matter, around 20% of these chips would be earmarked for Abu Dhabi-based AI leader G42, while the remainder would be delivered to U.S. companies operating high-tech data centers across the Emirates. The potential expansion of AI chip exports underscores the United States’ efforts to foster technology ties across the Gulf, just as military and economic cooperation reaches new highs.
