What's common between Saudi Arabia and the U.S.? Defence pact and AI

Established in 1932, Saudi Arabia has carved a niche for itself with its vast oil-rich reserves and significant petroleum exports. It holds the distinction of being the largest exporter of petroleum and boasts the second-largest oil reserves globally. The country's commitment to defense is also noteworthy, with the highest percentage of military spending based on its GDP. 

Currently, Saudi Arabia and the USA are negotiating a deal for a defense pact that is hinging on the topic of Israel. The USA would like the stance of Saudi Arabia towards Israel to change to a more positive approach amidst the conflicts that are happening with Hamas. 

Saudi Arabia recently hosted an event at a desert venue outside of Riyadh that attracted some of the top technologists from around the world. The country's state official reported that more than $10 billion in investments were signed during the event. 

It is to be noted that the investments are focused on building infrastructure that could host the future A.I. processing and computation powerhouses. It has been clear that Saudi Arabia wants to create a technological hub apart from its usual oil-based economy. 

Analysts told us this could be a game changer since Saudi Arabia could host many big tech companies relying on China-based manufacturers for GPUs and other chip components. The USA could benefit from a Middle Eastern country that could emerge as a leader in A.I. infrastructure.