On May 13, 2025, U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman signed a strategic economic partnership agreement in Riyadh, marking a significant deepening of economic and strategic ties between the two nations. The agreement encompasses cooperation in key sectors, including energy, mining, and defense, signifying a shared commitment to economic diversification and technological advancement.

Central to the partnership is Saudi Arabia's pledge to invest $600 billion in the United States over the next four years, focusing on artificial intelligence (AI), energy, and defense sectors. This substantial investment aligns with Saudi Arabia's Vision 2030 initiative, which aims to reduce the kingdom's dependence on oil by fostering growth in other industries.

In the realm of AI and technology, Saudi-based company Humain plans to deploy hundreds of thousands of Nvidia chips, including 18,000 advanced "Blackwell" servers, positioning the kingdom as a leader in AI development. Additionally, U.S. tech giants such as AMD and Amazon have announced investments of $10 billion and $5 billion, respectively, in Saudi Arabia's tech infrastructure.

The defense sector also sees significant collaboration, with U.S. defense companies securing a $142 billion agreement to supply advanced military equipment to Saudi Arabia. This deal is described as the largest defense agreement in U.S. history, underscoring the strengthening military ties between the two nations.

Energy and infrastructure projects are another focal point, with Saudi Arabia's DataVolt committing $20 billion to invest in U.S. AI infrastructure and data centers. These initiatives reflect a mutual interest in advancing technological capabilities and energy solutions.

President Trump praised Crown Prince Mohammed bin Salman, stating, "The bilateral relationship is vital to security and prosperity." This sentiment highlights the strategic importance both nations place on their partnership.

This agreement builds upon a history of U.S.-Saudi relations, including the 2017 arms deal valued at $110 billion immediately, and $350 billion over ten years. The current $142 billion defense agreement surpasses previous deals in immediate value, indicating a deepening of military cooperation.

The partnership's emphasis on AI investments is particularly noteworthy. Saudi Arabia's commitment to AI has intensified, with prior plans for a $100 billion AI project now expanding through partnerships with U.S. tech firms. This collaboration signals a shared commitment to positioning both nations at the forefront of technological innovation.

The economic diversification efforts align with Saudi Arabia's Vision 2030, promoting growth in sectors beyond oil and reducing reliance on oil revenues. The substantial defense deal may influence regional security dynamics and reflects a strengthening of military ties.

This comprehensive agreement underscores a pivotal moment in U.S.-Saudi relations, with far-reaching implications for economic collaboration, technological advancement, and regional security.