"The crown prince has committed to invest $1 trillion with U.S. companies, a pledge that is largely about using Saudi Arabia's oil and natural gas reserves to pivot his nation into becoming an AI data hub. "We will work closely with friends and partners like those in this room to build the largest, most powerful, most innovative AI ecosystem in the world," Trump said at the U.S.-Saudi Investment Forum on Wednesday."
"Trump took credit for the new investments and stock market performance this year - both of which have been a function of the AI buildout. For all of Trump's claims that his tariffs are generating new investments, much of that foreign capital is going to data centers for AI's computing demands or the power facilities needed to run those data centers."
"The consultancy Oxford Economics released an analysis Tuesday that said AI investments offset the "extreme uncertainty" in the U.S. economy this year - uncertainty caused in part by Trump's tariff hikes that have elevated inflation and potentially contributed to a slowdown in hiring. The firm noted that AI companies are starting to rely on debt to pay for the growth in the sector, which could suggest "a more vulnerable phase" next year for the boom."
The crown prince committed $1 trillion in investments with U.S. companies to leverage Saudi oil and natural gas reserves and develop an AI data hub. A pledge emphasized building the largest, most powerful, most innovative AI ecosystem in partnership with U.S. firms. Much of incoming foreign capital is flowing into data centers and the power facilities required to run them. Stock market gains have been linked to the AI buildout even as major indices showed volatility amid bubble concerns. Oxford Economics found AI investment helped offset economic uncertainty but noted rising debt use among AI firms, signaling potential vulnerability. Saudi commitments rose from $600 billion to $1 trillion during recent engagement.
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