Connect with us

News

Donald Trump lauds Saudi Arabia as he unveils AI and defence deals

Published

on

Donald Trump lauds Saudi Arabia as he unveils AI and defence deals

Donald Trump hailed the US’s relationship with Saudi Arabia on Tuesday, just hours after the White House unveiled what it said was $600bn worth of defence, artificial intelligence and other deals with the kingdom. 

The US president lauded the kingdom and its de facto leader, Crown Prince Mohammed bin Salman, as he began the first leg of his dealmaking, three-nation tour of the oil-rich Gulf.

“He’s an incredible man, I’ve known him a long time now. There’s nobody like him,” Trump said to a packed auditorium in Riyadh. Among the guests were Elon Musk, the world’s richest man, private equity baron Stephen Schwarzman, Nvidia boss Jensen Huang and dozens of other US executives.

The US-Saudi relationship had been a “bedrock” of security and prosperity, Trump said. He added: “Today, we reaffirm the bond and take the next steps to make our relationship closer, stronger, more powerful than ever before . . . And it will remain that way.”

Advertisement

In a press release before Trump’s speech, the White House had hailed “Saudi Arabia’s $600bn commitment to invest in the US” and “economic ties that will endure for generations to come”.

Prince Mohammed said the two countries would work over the coming months to increase the total to $1tn.

“We are working on partnership opportunities with the US worth $600bn, including agreements of more than $300bn announced today during this forum,” the crown prince said.

The deals unveiled by the White House included a commitment by Saudi Arabia’s new state-owned AI company, Humain, to build AI infrastructure in the kingdom using several “hundred thousands” of Nvidia’s most advanced chips over the next five years.

That would make it one of the biggest AI chip orders by a state company, underlining the scale of Prince Mohammed’s ambitions to position Saudi Arabia as a global AI hub and boosting Nvidia’s desire to build “sovereign AI” infrastructure around the world.

Advertisement

The first phase of Humain’s investment would involve deploying 18,000 of Nvidia’s latest “Blackwell” servers, the chipmaker said. Based on the price of a single Nvidia graphics processing unit, estimated at $30,000-$40,000, the Saudi investment would run into multiple billions of dollars.

AMD, one of Nvidia’s main competitors in the AI chip market, is also co-investing up to $10bn with Humain to deploy its own infrastructure in the country. Amazon made a similar $5bn commitment covering data centre infrastructure.

Nvidia shares rose 5.6 per cent on Tuesday, while AMD’s gained 4 per cent. Amazon was 1.3 per cent higher.

Tesla chief and Trump adviser Elon Musk, left, and Nvidia CEO Jensen Huang along with Saudi Crown Prince Mohammed bin Salman © Brendan Smialowski/AFP/Getty Images

Jimmy Goodrich, senior adviser for technology analysis to the Rand Corporation think-tank, said the “massive scale” of the Middle East AI announcements would “undoubtedly eat into future US data centre growth”.

“Instead of offshoring the future economic revolution to the Middle East, a better approach would be to channel Gulf state money into American re-industrialisation and energy dominance,” Goodrich said.

Advertisement

The White House also cited on Tuesday what it said was a “nearly $142bn” agreement to provide Riyadh “with state-of-the-art warfighting equipment and services from over a dozen US defence firms”.

It added this would include air force and space capabilities, missile defence, maritime and border security, land forces modernisation and upgrades to communication systems.

The US also referred to plans by Saudi Arabian DataVolt to invest $20bn in AI data centres and energy infrastructure in the US.

Trump is looking to secure deals and investment pledges worth more than $1tn on his trip to the Gulf, which will also include stops in Qatar and the United Arab Emirates.

The traditional US allies are among the biggest buyers of American weapons, boast sovereign wealth funds that collectively manage in excess of $3tn and have all stated their ambitions to invest heavily in AI. 

Advertisement

Many of the US’s most powerful tech executives were also in Riyadh, including Musk, Huang and OpenAI’s Sam Altman as Saudi Arabia hosted a glitzy investment forum. Top financiers including Blackstone’s Schwarzman, BlackRock’s Larry Fink and Citigroup’s Jane Fraser also attended. 

US tech companies have been increasingly looking to the Gulf, which manages some of the world’s largest and most active sovereign wealth funds, to raise capital and lure investments. 

The Trump administration last week scrapped a Biden-era rule under which Saudi Arabia, along with dozens of other countries including India and Singapore, would have faced limitations on their purchases of the most powerful US-designed AI chips.

Riyadh launched Humain, which will be chaired by Prince Mohammed and owned by the Public Investment Fund, the $940bn sovereign wealth fund, to steer its strategy and investments in the sector on Monday, the day before Trump arrived. 

Just days after Trump’s inauguration in January, Prince Mohammed committed Saudi Arabia to investing $600bn in the US over the next four years — the same amount that was announced on Tuesday.

Advertisement

The UAE followed up with a similar gesture in March, pledging to invest $1.4tn over the next 10 years. It is also seeking to establish itself as a leading AI hub and has taken a strategic decision to invest in US tech. 

Analysts question how the Gulf states will be able to deploy such a vast scale of capital in the timeframes announced, particularly Saudi Arabia as it grapples with lower oil prices, a widening budget deficit and the scale of its own domestic projects.

Additional reporting by Michael Acton in San Francisco

News

Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

Published

on

Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

The Supreme Court

Win McNamee/Getty Images


hide caption

toggle caption

Advertisement

Win McNamee/Getty Images

The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

Advertisement
Continue Reading

News

Map: Earthquake Shakes Central California

Published

on

Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

Advertisement
Continue Reading

News

US says Kuwait accidentally shot down 3 American jets

Published

on

US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

Advertisement

Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

Continue Reading

Trending