In a landmark series of agreements, the United States and Saudi Arabia have solidified a robust economic partnership, with deals worth hundreds of billions of dollars announced during Crown Prince Mohammed bin Salman’s visit to Washington. President Donald Trump revealed that $270 billion in new investment deals were signed, while Saudi state media reported an even higher figure of $557 billion. These agreements span various sectors, including technology, rare earth minerals, and energy, underscoring the deepening ties between the two nations.
Among the most notable deals is a joint venture between MP Materials, a US-based rare earths company, and Saudi Arabian Mining Company (Maaden). The partnership aims to establish a refinery in Saudi Arabia to process rare earth minerals, critical for advanced technologies. The US Department of War is financing the American contribution to this venture, highlighting the strategic importance of reducing reliance on China, which dominates global rare earth refining.
In the tech sector, Elon Musk’s xAI announced a collaboration with Saudi Arabia’s state-owned AI company, Humain, to develop a network of GPU data centers, including a massive 500-megawatt facility. Humain also secured partnerships with AMD, Cisco Systems, and Amazon to expand its data center capacity, positioning Saudi Arabia as a global hub for AI infrastructure. The kingdom’s competitive electricity prices, driven by its abundant fossil fuel and solar energy reserves, make it an attractive location for energy-intensive data centers.
Additionally, Saudi Aramco, the kingdom’s state-owned oil giant, signed 17 preliminary agreements with US companies, potentially worth over $30 billion. These deals span sectors such as liquefied natural gas, financial services, and advanced materials manufacturing, further cementing Saudi Arabia’s role as a key player in global energy markets.
While the scale of these agreements is impressive, questions remain about the distinction between pledges and actual financial commitments. Nevertheless, the deals reflect a concerted effort by both nations to strengthen economic and technological cooperation, with Saudi Arabia leveraging its sovereign wealth fund and strategic resources to attract global investments.