Nvidia's stock price has surged following a significant deal between the US and Saudi Arabia to fund artificial intelligence projects. The deal, valued at $600 billion, includes $142 billion in defense sales and $80 billion for cutting-edge technologies like AI. As part of this agreement, Nvidia will supply Saudi Arabia's AI startup, Humain, with 18,000 of its advanced GB300 Grace Blackwell chips.
Humain will acquire several hundred thousand Nvidia processors over the next five years to build AI factories with a projected power capacity of up to 500 megawatts. This deal is expected to boost Nvidia's revenue and further establish the company as a leader in the AI chip market.
AMD will also play a significant role in this partnership, providing thousands of its chips and software for Humain's data centers as part of a separate deal worth up to $10 billion. Additionally, Amazon Web Services (AWS) plans to invest $5 billion-plus in a new "AI Zone" in Saudi Arabia, complementing a separate $5.3 billion investment to build a new AWS region.
Nvidia's stock rose 5.6% after the announcement, although it remains 4.5% lower for the year. The company's market capitalization stands at $3.08 trillion, with a current price-to-earnings ratio of 42.32. This deal highlights the growing importance of AI in the global economy and the increasing demand for advanced AI technologies.
