During a recent Gulf tour, President Donald Trump secured significant AI technology deals, including major partnerships with chipmakers Nvidia and AMD, and a new Saudi AI company called Humain.

These multibillion-dollar agreements focus on AI chip exports and infrastructure development, sparking mixed reactions from lawmakers and industry leaders.

The competition between the U.S. and China in AI technology is intensifying, with the U.S. tightening export controls on advanced chips to curb China's advancements.

Leading semiconductor analyst Dylan Patel noted that these deals could shift the balance of power in favor of the U.S., suggesting that China would have preferred to secure such agreements first.

Concerns have been raised by Democratic Senator Chuck Schumer and the Republican-led House Select Committee regarding the risks of U.S. chip deals with Gulf nations, particularly the potential for Chinese access to U.S.-made AI chips.

Despite the concerns, David Sacks, Trump's AI czar, defended the deals, emphasizing their potential benefits for the U.S. and questioning the criticism surrounding them.

The Trump administration recently overturned a Biden-era rule that imposed stricter export limitations on AI chips, allowing for increased trade with Gulf nations.

As part of these agreements, the UAE will import up to 500,000 advanced AI chips from Nvidia annually starting in 2025, while committing to a $1.4 trillion investment in various U.S. sectors over the next decade.

Investor response has been positive, with shares of Nvidia and AMD rising following the announcements, despite ongoing security concerns.

OpenAI, led by CEO Sam Altman, plans to assist the UAE in developing one of the world's largest data centers, supported by Nvidia and Cisco, further solidifying the region's status as an emerging AI hub.

In addition to the AI chip deals, Saudi Arabia's Humain secured 18,000 Blackwell AI chips for a data center, with the kingdom promising a $600 billion investment in U.S. companies.

Altman has publicly supported these deals, labeling critics as 'naive' and asserting that they represent a smart move for the U.S.