NVIDIA Collaborates with Saudi PIF Subsidiary to Develop AI Factories Utilizing Advanced NVIDIA GPUs

This article does not constitute investment advice, and the author does not hold any shares in the companies discussed.

Emerging Opportunities for NVIDIA Amidst Changing Global Dynamics

With the current tension of the trade war seemingly easing and the impending obsolescence of the Biden-era AI diffusion regulations, NVIDIA is poised for significant growth. Recent developments have sparked optimism among investors, notably a strategic partnership with HUMAIN, the AI subsidiary of Saudi Arabia’s Public Investment Fund (PIF).This collaboration is seen as a catalyst for NVIDIA’s expansive potential.

NVIDIA and HUMAIN: A Bold Collaboration

The partnership between NVIDIA and HUMAIN aims to position Saudi Arabia as a global leader in AI, GPU cloud computing, and digital transformation, focusing on fostering innovation and expanding growth worldwide. This forward-thinking alliance is part of Saudi Arabia’s vision to thrive in the advancing digital era.

As part of this ambitious initiative, HUMAIN plans to establish AI factories in Saudi Arabia, which will reportedly have a capacity of up to 500 megawatts. This infrastructure will harness several hundred thousand of NVIDIA’s cutting-edge GPUs over a five-year period. In the initial phase, the deployment will include 18, 000 GB300 GPUs integrated with NVIDIA InfiniBand networking technology.

Revolutionizing Industry with AI and Robotics

Furthermore, the HUMAIN project will utilize NVIDIA’s Omniverse platform, empowering the Kingdom’s transition into Industrial Revolution 4.0 through advanced AI and robotics. This transformational platform will enable the simulation of real-world environments, enhancing AI applications in various sectors.

A crucial aspect of this partnership is NVIDIA’s commitment to training and upskilling the Saudi workforce. Through hands-on experience with AI technologies, simulation techniques, robotics, and digital twin simulations, Saudi citizens will be better equipped to participate in and contribute to the evolving tech landscape.

Here’s what US & China agreed to:-US reduces 145% to 30% for 90 days-China reduces 125% to 10% for 90 days-90 day suspension to negotiate more-sector specific tariffs remain on steel, aluminum, cars -rare earth and advanced semiconductor licensing remains https://t.co/gbU2ijZ5WI pic.twitter.com/f3PjV41WXM

— Patrick Moorhead (@PatrickMoorhead) May 12, 2025

Trade Dynamics and Market Reactions

Meanwhile, the market is experiencing a shift as concerns stemming from the trade war diminish. Notably, the US and China recently reached an agreement to substantially reduce tariffs on each other’s goods by an overall margin of 115%.Under this agreement, tariffs on Chinese imports to the US will be lowered to 30%, while American goods entering China will incur a 10% tariff. This arrangement is set to remain in effect for 90 days as both nations seek to finalize a more comprehensive trade agreement.

It is important to recall that NVIDIA was significantly affected during the US-China trade conflict, particularly when the Trump administration imposed licensing restrictions on its H20 GPU aimed at the Chinese market. To navigate this tumultuous landscape, NVIDIA is reportedly developing a simplified version of the H20 that could bypass these regulatory hurdles.

Additionally, anticipated adjustments to AI diffusion rules under the Biden administration could favor NVIDIA. The proposed tiered system appears likely to be replaced, focusing on limiting Huawei’s Ascend AI accelerators, which are emerging as viable challengers to NVIDIA’s GPU dominance in China.

As NVIDIA forges ahead with its transformative partnerships and navigates the evolving trade landscape, the company’s growth trajectory seems promising, setting the stage for significant advancements in AI technology.

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