WEBVTT - US Plans to Grant Saudi Arabia More Access to AI Chips 0:00:02.520 --> 0:00:09.880 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.960 --> 0:00:15.680 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.079 --> 0:00:40.240 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:35.200 --> 0:00:36.720 Live from New York and San Francisco. 0:00:36.840 --> 0:00:40.280 This is Bloomberg Technology coming up. All eyes on Saudi 0:00:40.280 --> 0:00:43.479 Arabia today as tech CEOs meet with President Trump and 0:00:43.520 --> 0:00:46.320 Saudi Arabia's crown prints, plus. 0:00:46.080 --> 0:00:49.280 The Trump administration preparing to announce a deal that would 0:00:49.280 --> 0:00:54.080 grant Saudi Arabia more access to advanced semiconductors. 0:00:53.400 --> 0:00:57.440 And Apple planning to improve iPhone battery life with AI 0:00:58.160 --> 0:00:59.720 details later this hour, But first we. 0:00:59.680 --> 0:01:00.800 Check in on these markets. 0:01:01.040 --> 0:01:04.080 I bring you year to date. We re enter a 0:01:04.120 --> 0:01:06.800 ball market on the NASA one hundred, and now we 0:01:06.880 --> 0:01:09.119 push higher on the Nazak one hundred to seventy tens 0:01:09.120 --> 0:01:11.760 percent for year to date, just to show you the 0:01:11.760 --> 0:01:15.120 whirlwind of movements we've had throughout the tariff concerns. We 0:01:15.200 --> 0:01:17.959 now break back even when it comes to the Magnificent 0:01:18.000 --> 0:01:19.320 seven and leading the charge higher. 0:01:19.520 --> 0:01:19.600 Ed. 0:01:19.920 --> 0:01:22.600 A lot of that to do with geopolitics today, but 0:01:22.720 --> 0:01:24.560 over in the Middle East, rather than what's happening with 0:01:24.600 --> 0:01:25.360 the US and China. 0:01:26.160 --> 0:01:28.959 Yeah, the single most important tech name. We're focused on Nvidia. 0:01:29.040 --> 0:01:31.520 The stock has really surged in the last thirty minutes 0:01:31.640 --> 0:01:36.000 or so. A deal with Saudi Arabia's Humane eighteen thousand 0:01:36.040 --> 0:01:38.760 Blackwell GPO used in the first phase going into a 0:01:38.760 --> 0:01:42.679 five hundred megawatt data center, small in hyperscale terms, but 0:01:42.840 --> 0:01:46.920 significant because of access to cutting edge technology for that nation. 0:01:47.240 --> 0:01:50.000 AMD also has its own ad hoc agreement going on 0:01:50.040 --> 0:01:53.160 with the state. This is important, and it's the money 0:01:53.480 --> 0:01:56.080 that's driving tech right now coming out of Saudi Arabia. 0:01:56.280 --> 0:01:59.120 But you're absolutely right, there's the politics behind it as well. 0:01:59.480 --> 0:02:03.360 There is, And let's get the context. Bloomberg's Jamana Bissecchi 0:02:03.600 --> 0:02:06.480 is joining us now live from Saudi Arabia. We've just 0:02:06.520 --> 0:02:09.400 heard from Elo Musk on stage, of course, anticipating the 0:02:09.480 --> 0:02:12.120 US President to be there with the Crown Prince. Just 0:02:12.160 --> 0:02:14.800 give us the context of what is happening right now. 0:02:17.360 --> 0:02:19.840 Yeah, well, obviously Elon Musk must have known that Bloomberg 0:02:19.880 --> 0:02:23.640 technology was coming up. The timing was perfect. But yes, 0:02:23.680 --> 0:02:27.080 there have been so many discussions taking place around partnerships 0:02:27.120 --> 0:02:29.839 on everything from defense. One of the largest deals ever 0:02:29.919 --> 0:02:32.520 announced in History SAIDI Arabia pledging to go up to 0:02:32.520 --> 0:02:34.840 one hundred and forty two billion dollars worth of arms 0:02:34.840 --> 0:02:39.120 and weaponry from the US. A dozen defense companies involved 0:02:39.160 --> 0:02:42.480 in that. The headline figure six hundred billion dollars worth 0:02:42.520 --> 0:02:46.480 of Saudi investment committed to be invested in the US 0:02:46.520 --> 0:02:48.720 over the coming years. Not a lot of detail yet, 0:02:48.960 --> 0:02:51.120 and that is a number that we've heard before. But 0:02:51.200 --> 0:02:55.120 then at the technology side, some massive announcements coming through 0:02:55.240 --> 0:02:57.560 just in the last hour, and of note is the 0:02:57.560 --> 0:03:00.360 one that Ed was just talking about with Human So 0:03:00.400 --> 0:03:03.560 this was the AI investment vehicle that the Crown Prince 0:03:03.560 --> 0:03:07.600 announced was being launched yesterday in anticipation of today, So 0:03:07.639 --> 0:03:10.160 this is a new venture was only announced ahead of 0:03:10.240 --> 0:03:13.240 President Trump's visit today. They are saying that with this 0:03:13.360 --> 0:03:16.760 venture they will be building AI factories across the Kingdom 0:03:16.760 --> 0:03:21.760 of Saudi Arabia and using up to eighteen thousand Nvidia 0:03:22.120 --> 0:03:25.520 at GB three hundred Grace Blackwell chips. So those are 0:03:25.520 --> 0:03:28.680 those chips, of course, that Sadi Arabia had been angling 0:03:28.880 --> 0:03:30.959 to get access to. And by the way, earlier in 0:03:31.000 --> 0:03:33.400 the day, I should have mentioned that Jason Huang was 0:03:33.440 --> 0:03:36.840 walking around here, so we sort of got a glimpse 0:03:36.880 --> 0:03:39.440 of a big announcement that was to come. But this 0:03:39.560 --> 0:03:42.080 ties back to another announcement that came in the run 0:03:42.160 --> 0:03:44.360 up to this trip, which was that the Trump administration 0:03:45.200 --> 0:03:49.560 are rescinding those Biden instituted diffusion rules that were set 0:03:49.600 --> 0:03:51.720 to come in place. And earlier on we heard from 0:03:51.760 --> 0:03:54.560 David Sachs, who was the crypto AISAR, and he was 0:03:54.600 --> 0:03:57.880 saying that those diffusion rules were too bureaucratic and there 0:03:57.880 --> 0:04:00.920 are smarter ways to ensure that these chips don't get 0:04:00.920 --> 0:04:03.520 into the wrong hands, which is why they're rescinding that. 0:04:03.800 --> 0:04:07.240 And of course coming up with these bilateral agreements, this 0:04:07.320 --> 0:04:09.320 big one today with Nvidia and. 0:04:09.320 --> 0:04:13.040 Humane, there are still some confirmations to come, right, So 0:04:13.080 --> 0:04:17.279 Bloomberg reported, citing sources, that the Trump administration would do 0:04:17.320 --> 0:04:20.719 a deal with Saudi Arabia to give the nation access 0:04:20.760 --> 0:04:23.360 to leading edge or cutting edge chips. Then Nvidia told 0:04:23.440 --> 0:04:26.120 us that they were already doing it eighteen thousand GPUs. 0:04:26.480 --> 0:04:30.240 We will hear from President Trump and Crown Prince Mohammed 0:04:30.240 --> 0:04:33.120 bin Salman later in Riad set the scene for us 0:04:33.160 --> 0:04:36.160 of what's to come and what kind of further details 0:04:36.200 --> 0:04:37.320 we're looking out for Jamana. 0:04:40.040 --> 0:04:42.720 Yeah. Absolutely, so they should be making their way here 0:04:42.800 --> 0:04:46.599 any second. Now. Everything is running slightly delayed, but they 0:04:46.600 --> 0:04:48.479 should be here in the next ten to fifteen minutes 0:04:48.800 --> 0:04:50.839 walking on the stage behind me. And actually, if you 0:04:50.920 --> 0:04:53.000 just take a look, I don't know if you can see, 0:04:53.040 --> 0:04:54.920 but there are are a bunch of individuals. If you 0:04:55.000 --> 0:04:58.440 zoom in, you'll see that it is many American CEOs 0:04:58.560 --> 0:05:03.280 alongside Saudi officials, industry leaders from Saudi Arabia standing together 0:05:03.480 --> 0:05:07.880 for this group photo. Because so many of these deals 0:05:07.880 --> 0:05:10.640 have been signed, and just to give you to run 0:05:10.680 --> 0:05:14.000 through some of the other deals that also came out today, Aramco, 0:05:14.160 --> 0:05:17.120 for example, the state oil company, saying that they're looking 0:05:17.120 --> 0:05:20.200 to spend three point four billion dollars to expand their 0:05:20.240 --> 0:05:25.039 refineries in the US. There's a health solutions firm that 0:05:25.080 --> 0:05:28.200 has also said that they are coming together with US 0:05:28.279 --> 0:05:31.000 to partner on five point eight billion dollars building a 0:05:31.040 --> 0:05:33.760 plant in the United States as well. Another big announcement 0:05:33.800 --> 0:05:37.120 on the airlines front, an airline leasing company called Abby 0:05:37.200 --> 0:05:40.080 Lease in Saudi Arabia have also committed to buying four 0:05:40.080 --> 0:05:43.719 point eight billion dollars worth of Boeing seven three seven 0:05:43.800 --> 0:05:46.279 eight jets, So that's also been a big focus for 0:05:46.400 --> 0:05:48.520 President Trump in the region. We know that in Doha 0:05:48.600 --> 0:05:51.799 as well. In coming days there could be a big 0:05:52.120 --> 0:05:54.960 order coming on the Boeing fronts. And then, of course 0:05:54.960 --> 0:05:57.479 we spoke about this big defense deal one hundred and 0:05:57.480 --> 0:06:02.320 forty two billion dollars a worth of defense agreements secured 0:06:02.320 --> 0:06:05.880 between the US and Saudi Arabia. From a geopolitical perspective 0:06:05.880 --> 0:06:08.480 as well, that is key for Saudi Arabia. They have 0:06:08.560 --> 0:06:11.560 been pushing to get this defense agreement across the line. 0:06:11.720 --> 0:06:14.640 It seems like they are finally there. And then we 0:06:14.680 --> 0:06:17.600 haven't even talked about some of the smaller, perhaps but 0:06:17.760 --> 0:06:21.120 also important at geopolitical breakthroughs in the run up to 0:06:21.400 --> 0:06:24.479 these next few days. So far, lots of announcements and 0:06:24.520 --> 0:06:26.839 we're going to hear more from the presidents. 0:06:26.440 --> 0:06:30.440 And the Crown Prince Sorly Bloomberger's Jumana Bdecci, Thank you 0:06:30.600 --> 0:06:32.599 very much. Now let's stick with that top story. The 0:06:32.600 --> 0:06:36.240 Trump administration was preparing to announce a deal that would 0:06:36.279 --> 0:06:40.120 grant Saudi Arabia more access to advanced chips, allowing the 0:06:40.120 --> 0:06:43.200 country to increase its data center capacity. That was all 0:06:43.200 --> 0:06:46.760 according to sources, Bloomberg's Mike Shephard joins us, Now it 0:06:46.839 --> 0:06:50.920 is difficult to unpack because literally the deal between Nvidia 0:06:51.160 --> 0:06:54.359 and Humane, as an example, is for blackwell their current 0:06:54.440 --> 0:06:57.880 generation of accelerator. Mike and my understanding that that will 0:06:57.880 --> 0:07:02.679 go into server designs in a five megawatts data center, 0:07:02.720 --> 0:07:06.000 which isn't huge frankly, in the scheme of hyperscale data centers. 0:07:06.320 --> 0:07:08.760 What do we know about where this kind of BILA 0:07:09.000 --> 0:07:10.880 stands between the two nations. 0:07:12.000 --> 0:07:15.200 Well, we're still waiting to see the formal announcement of 0:07:15.280 --> 0:07:18.360 this agreement, but we are expecting it during the President's 0:07:18.400 --> 0:07:20.960 visit to the kingdom, and the idea would be to 0:07:21.080 --> 0:07:25.200 grant Saudi Arabia much more access with fewer fetters and 0:07:25.320 --> 0:07:29.000 obstacles in the way to gaining access to those kinds 0:07:29.000 --> 0:07:31.320 of chips that you just talked about from Nvidia and 0:07:31.440 --> 0:07:34.000 from am D that are needed to power the kingdom's 0:07:34.280 --> 0:07:38.280 AI ambitions. That five hundred megawatt data center that you 0:07:38.560 --> 0:07:42.280 just alluded to is just the start. Really, and as 0:07:42.440 --> 0:07:47.240 Jamana outlined in her opener there, the Biden Trump administration 0:07:47.360 --> 0:07:50.600 is moving away from Biden era of rules that set 0:07:50.640 --> 0:07:55.600 these three broad categories of access governing countries' ability to 0:07:55.760 --> 0:07:59.920 buy these sophisticated AI chips. The Trump administration instead is 0:08:00.280 --> 0:08:04.880 trying to set up these bilateral accords with individual countries 0:08:05.000 --> 0:08:08.240 based on needs and based on the relationship. Now the concern, 0:08:08.280 --> 0:08:11.120 of course, is how do you keep China from exploiting 0:08:11.360 --> 0:08:15.560 those relationships and somehow gaining access, And that is going 0:08:15.640 --> 0:08:17.600 to be one of the tricks in all of these 0:08:17.640 --> 0:08:20.960 individual deals. The US will be insisting on some security 0:08:21.000 --> 0:08:24.280 provisions with Saudi Arabia, and there are also similar discussions 0:08:24.320 --> 0:08:27.320 about to take place with the United Arab Emirates on 0:08:27.400 --> 0:08:30.080 a deal that may also grant them access to that 0:08:30.240 --> 0:08:32.680 also has been in the work. These golf nations, like 0:08:32.720 --> 0:08:35.680 so many others, are seeking access to these chips, and 0:08:35.720 --> 0:08:38.680 they're imploring the Trump administration to take some steps to 0:08:38.720 --> 0:08:39.400 make it easier. 0:08:39.720 --> 0:08:42.199 This is a broad trip to the Middle East. We'll 0:08:42.200 --> 0:08:44.079 get onto the UA in a moment. But some breaking 0:08:44.120 --> 0:08:46.679 news that President Trump is indeed set to meet the 0:08:46.679 --> 0:08:50.360 Syrian president in Saudi Arabia. This is acording to a 0:08:50.480 --> 0:08:53.720 US official, and Trump himself had said the US may 0:08:53.760 --> 0:08:57.040 relieve sanctions on Syria to give the country quote a 0:08:57.120 --> 0:09:00.280 fresh start that being reported in previous days. My so 0:09:00.640 --> 0:09:04.840 this is a broad geopolitical conversation. We have go back 0:09:04.880 --> 0:09:07.240 to really what we focus on in tech. The fact 0:09:07.240 --> 0:09:09.959 that these deals is access might be granted, and not 0:09:10.080 --> 0:09:13.000 just for Saudi Arabia, potentially for the UAE and all 0:09:13.040 --> 0:09:15.480 of this while we are still trying to see a 0:09:15.880 --> 0:09:19.400 restriction on China's access either YA Cloud or indeed by 0:09:19.480 --> 0:09:21.200 redistribution by those countries. 0:09:22.400 --> 0:09:25.560 Well, that's right, Carol, and other nations could look to 0:09:25.760 --> 0:09:29.280 what happens during this trip. This is Donald Trump's first 0:09:29.320 --> 0:09:33.200 trip abroad since winning re election and taking office, and 0:09:33.320 --> 0:09:37.120 other nations will be looking to how the UAE and 0:09:37.200 --> 0:09:41.640 Saudi government arrange a new understanding with the Trump administration 0:09:41.679 --> 0:09:44.480 when it comes to access to advanced technology. This could 0:09:44.520 --> 0:09:48.240 be a template for how other countries, whether it be 0:09:48.400 --> 0:09:52.400 in Asia or in Europe, somehow reach an understanding with 0:09:52.600 --> 0:09:57.040 Trump on gaining access to Nvidia technology. Every country out 0:09:57.040 --> 0:09:59.440 there wants more of it, They want to expand their 0:09:59.480 --> 0:10:03.440 AIK abilities, and right now in Nvidia and AMD are 0:10:03.559 --> 0:10:06.240 the biggest names and really the only game in town. 0:10:07.240 --> 0:10:08.960 I want to go back to the politics of this mic. 0:10:09.200 --> 0:10:12.839 It shows us in our reporting that the Trump administration 0:10:13.280 --> 0:10:17.120 is more willing than the Biden administration were to allow 0:10:17.240 --> 0:10:20.240 the movement of US technology to the Gulf region. 0:10:21.720 --> 0:10:24.360 That's absolutely right ed, and we've heard this signal from 0:10:24.360 --> 0:10:28.200 the President on down. His AI advisor David Sachs has 0:10:28.280 --> 0:10:32.200 really reflected that quite publicly on Accident and others public 0:10:32.240 --> 0:10:35.560 statements recently where he has said, look, this AI diffusion 0:10:35.640 --> 0:10:38.080 rule from the Biden team, maybe it was well spirited 0:10:38.120 --> 0:10:42.480 and trying to keep China from gaining access to US technology, 0:10:42.679 --> 0:10:44.760 but it was inflexible, it was hard to work with, 0:10:44.840 --> 0:10:49.400 and it impeded our ability to export American technology abroad. 0:10:49.480 --> 0:10:52.360 And he really wanted to make sure that America first 0:10:52.720 --> 0:10:56.160 didn't just stay within these borders, in his view, and 0:10:56.480 --> 0:10:58.880 the way that they see this is by sharing this 0:10:59.000 --> 0:11:01.840 technology with U U allies that are seen as trusted. 0:11:02.760 --> 0:11:05.400 We do have live pictures right now, Mike of the 0:11:05.440 --> 0:11:09.000 President of the United States, President Donald Trump, arriving at 0:11:09.000 --> 0:11:12.080 the event with the Crown Prince of course, Prince Mohammed 0:11:12.160 --> 0:11:16.599 Vin Salman MBS as he has known more largely. This is, 0:11:16.640 --> 0:11:18.559 of course, as they're going to take the stage themselves. 0:11:18.600 --> 0:11:21.400 All of this is that the Saudi US Investment Forum 0:11:21.400 --> 0:11:24.360 currently upon US in Riad, where we are seeing deals 0:11:24.360 --> 0:11:27.160 be unfolded, where we're seeing plenty of US executives take 0:11:27.200 --> 0:11:29.640 to the stage and we are about to hear from 0:11:29.800 --> 0:11:32.880 the President and the Crown prints themselves. But Mike, as 0:11:32.880 --> 0:11:35.360 we see these live pictures of the arrival of the 0:11:35.400 --> 0:11:39.160 dignitaries at this moment, what else are we preparing ourselves 0:11:39.240 --> 0:11:42.360 for in terms of the breadth, whether it be in technology, 0:11:42.360 --> 0:11:44.400 whether it be in defense. This seems to be the 0:11:44.480 --> 0:11:48.360 key area that President Trump wants to see billions be 0:11:48.480 --> 0:11:49.080 exchanged for. 0:11:50.640 --> 0:11:51.240 Well, that's right. 0:11:51.520 --> 0:11:56.720 This trip is about deals, deals, deals. While geopolitics play 0:11:56.800 --> 0:12:00.160 a role in this conversation that the President is going 0:11:59.920 --> 0:12:03.120 to be having in the three nation trip he is 0:12:03.200 --> 0:12:06.719 taking Saudi Arabia, then the UAE, and then Cutter, it 0:12:06.800 --> 0:12:10.959 really is about bringing investment to the US. This has 0:12:11.040 --> 0:12:14.280 been his mission since taking office. We saw on his 0:12:14.400 --> 0:12:18.040 first full day in office that big soft Stargate deal 0:12:18.040 --> 0:12:21.520 announced with SoftBank and others, and he really wants to 0:12:21.880 --> 0:12:24.760 be able to tout and point to this as his 0:12:25.040 --> 0:12:29.680 economic accomplishment through tariffs that would pressure companies and other 0:12:29.760 --> 0:12:32.840 countries to send more business to the US to get 0:12:32.840 --> 0:12:36.200 manufacturing here, but also to ensure that there is an 0:12:36.200 --> 0:12:39.599 American stamp on all of this technology that we are seeing. 0:12:39.360 --> 0:12:42.920 Caro Michael Shepherd standing by for us. We appreciate it 0:12:42.960 --> 0:12:44.200 will come back to you in a moment. 0:12:44.520 --> 0:12:45.320 But as we. 0:12:45.200 --> 0:12:49.080 See the President of the United States gather with the 0:12:49.120 --> 0:12:51.439 Crown Prince over in read, we're going to set you 0:12:51.480 --> 0:12:54.000 to the market reaction right now because Fionda sin Culture 0:12:54.000 --> 0:12:56.720 is standing by scene arounalyst. The City Index financial markets 0:12:56.880 --> 0:12:59.000 look today, we do have a risk on attitude. We 0:12:59.040 --> 0:13:01.520 are seeing the NASA cup more than one percent let's 0:13:01.520 --> 0:13:03.160 call it one and a half percent at the moment, 0:13:03.440 --> 0:13:08.319 deals unfolded, but also the China US calming in terms 0:13:08.400 --> 0:13:11.400 of the ratcheting up of tariffs. What do you think 0:13:11.400 --> 0:13:12.920 about buying into these names right now? 0:13:14.280 --> 0:13:17.160 Yes, we're definitely getting a sense that the mood music 0:13:17.360 --> 0:13:20.880 has changed quite considerably as we started this week and 0:13:20.920 --> 0:13:23.880 as we continue into Tuesday. So obviously we had that 0:13:24.040 --> 0:13:27.360 strong rally in the NAVSDAK one handri Esa up around 0:13:27.440 --> 0:13:28.640 four point three percent. 0:13:29.040 --> 0:13:31.280 Seeing those games extended today. 0:13:31.040 --> 0:13:33.720 Up around one point four percent, So the mood is 0:13:33.760 --> 0:13:36.520 definitely upbeat as far as these stocks are concerned. 0:13:36.559 --> 0:13:37.520 And it does. 0:13:37.440 --> 0:13:41.840 Feel that, it does feel that the sentiment is changing 0:13:42.000 --> 0:13:45.120 and that the outlook is more positive. You know, we're 0:13:45.280 --> 0:13:48.320 past that worst case scenario. We seem to be looking 0:13:49.120 --> 0:13:50.599 at a more positive. 0:13:50.360 --> 0:13:51.360 Upbeat outlook. 0:13:51.760 --> 0:13:54.000 I would like to say that I don't think we're 0:13:54.080 --> 0:13:56.400 quite out of the woods yet. I think there are 0:13:56.480 --> 0:14:01.040 still potential for some tarift tar of issues which haven't 0:14:01.080 --> 0:14:04.760 been resolved, particularly around sort of electronics and semiconductors that 0:14:04.800 --> 0:14:05.720 we had heard. 0:14:05.480 --> 0:14:11.240 The White House say that they were sort of putting back. 0:14:11.800 --> 0:14:13.520 So we still need to get a little bit more 0:14:13.559 --> 0:14:17.120 clarification about that. But as far as the de escalation 0:14:17.280 --> 0:14:19.880 of the trade will with China is concerned, as far 0:14:19.920 --> 0:14:23.800 as this push for deals in Saudi Arabia is concerned 0:14:23.800 --> 0:14:25.320 in UA, that's. 0:14:25.120 --> 0:14:28.960 Really important, Fiona, the President's standing next to MBS, but 0:14:29.040 --> 0:14:33.280 also Saudi Arabia's investment Minister Khalid Alfhali and also the 0:14:33.320 --> 0:14:36.280 head of the Public Investment Fund. If these tech deals 0:14:36.600 --> 0:14:40.160 are substantive between the United States and Saudi Arabia, how 0:14:40.160 --> 0:14:42.360 do you do that as an investor? Do you invest 0:14:42.400 --> 0:14:45.000 in the US proxy that's set to benefit or is 0:14:45.040 --> 0:14:46.800 Saudi accessible to your clients? 0:14:48.160 --> 0:14:48.240 No? 0:14:48.360 --> 0:14:50.200 So it would be through the US proxy. 0:14:50.280 --> 0:14:53.120 That's where we'd be focusing attention, and I think that's 0:14:53.160 --> 0:14:55.440 where the most popular sort of trades would. 0:14:55.200 --> 0:14:56.240 Be looking as well. 0:14:56.280 --> 0:15:00.120 That's what's most easily accessible and potential. 0:15:00.560 --> 0:15:01.440 The I would like. 0:15:01.400 --> 0:15:04.280 To see less risk adverse, but I mean, that's what 0:15:04.320 --> 0:15:05.960 we just need to focus on at the moment, is 0:15:06.000 --> 0:15:07.320 where is the access to this? 0:15:07.440 --> 0:15:09.240 And yeah, through the US proxies. 0:15:09.320 --> 0:15:11.920 I mean, obviously, chip stocks are the area that we've 0:15:11.960 --> 0:15:14.200 been looking at, very focused at recently. 0:15:14.560 --> 0:15:17.440 Those are the areas that are continuing to push higher. 0:15:17.440 --> 0:15:20.720 Today video is up more than five percent. How big 0:15:20.720 --> 0:15:22.520 a deal is this for them to get access to 0:15:22.560 --> 0:15:23.480 the Saudi market. 0:15:25.080 --> 0:15:27.280 I think this is a big deal, not just because 0:15:27.320 --> 0:15:30.200 the numbers that have been announced today potentially they're not 0:15:30.560 --> 0:15:33.080 really as huge, but it's just what this means for 0:15:33.120 --> 0:15:36.440 the future. We know that Saudi Arabia is very focused 0:15:36.760 --> 0:15:41.120 on looking towards AI, looking towards technological future, and so 0:15:41.240 --> 0:15:43.720 this could be the start of something that really is 0:15:43.880 --> 0:15:46.600 much bigger than what it appears to be today. Today 0:15:46.680 --> 0:15:50.120 is definitely a move in the right direction. It's upbeat news, 0:15:50.120 --> 0:15:52.480 it's encouraging and we can see that from the reaction 0:15:52.600 --> 0:15:54.840 in the share price. But I think actually what this 0:15:54.960 --> 0:15:57.200 means for the future and going forward is almost just 0:15:57.240 --> 0:15:57.920 as important. 0:15:58.400 --> 0:16:02.360 And what's been sowing the willingness to buy back into 0:16:02.800 --> 0:16:06.640 generative AI trade or to these AI infrastructure players in particular, 0:16:07.000 --> 0:16:09.160 was the lack of clarity, a lack of clarity as 0:16:09.160 --> 0:16:11.680 to what the AI diffusion rule would be implemented. We 0:16:11.720 --> 0:16:13.680 know that that's now not going to be the fact 0:16:13.680 --> 0:16:15.360 that now it becomes a tip for tap, that it 0:16:15.400 --> 0:16:19.040 becomes embroiled within the overall tariff conversations on a country 0:16:19.080 --> 0:16:22.360 by country basis. Fiona, is that a positive? Does that 0:16:22.440 --> 0:16:25.160 even mean that maybe we'll have Jensen one having access 0:16:25.160 --> 0:16:26.640 still to China in some way. 0:16:28.160 --> 0:16:30.560 Potentially? I mean, I think what you say is true. 0:16:30.560 --> 0:16:33.760 There has been more clarity than what there was, but 0:16:33.840 --> 0:16:37.240 I don't think everything is as clear as it could be. 0:16:37.120 --> 0:16:38.280 For investors still. 0:16:38.480 --> 0:16:41.040 I do think there is still a level of uncertainty, 0:16:41.720 --> 0:16:45.640 but that has been broadly wiped away. I mean, if 0:16:45.640 --> 0:16:48.800 we think about what that means, what investors are looking for. 0:16:48.800 --> 0:16:50.960 Is some sort of form of clarity, and because we. 0:16:50.960 --> 0:16:56.360 Are moving slowly and steadily towards a sort of more 0:16:56.440 --> 0:16:59.280 clearer understanding, of what Trump is looking for, what Trump's 0:16:59.280 --> 0:16:59.920 aiming for. 0:17:00.240 --> 0:17:02.920 Then that obviously does help the investors take their decisions. 0:17:03.520 --> 0:17:06.320 Does it then become all about the twenty twenty four 0:17:06.359 --> 0:17:10.280 trade in video AMD once again the infrastructure play? Do 0:17:10.320 --> 0:17:12.560 we broaden in out because at the moment, Apple of 0:17:12.600 --> 0:17:14.600 course has been in the line of fire when it 0:17:14.600 --> 0:17:17.639 comes to tariff concerns. How much broader do we go 0:17:17.680 --> 0:17:18.560 in the buying of tech? 0:17:20.359 --> 0:17:20.560 Yeah? 0:17:20.640 --> 0:17:23.200 I think you know, as you pointed out, we had 0:17:23.240 --> 0:17:25.720 seen a very very strong rally. We've seen that AI 0:17:25.800 --> 0:17:28.760 trade had been obviously very key across twenty twenty four 0:17:28.840 --> 0:17:32.080 and hadn't been in play at all in twenty twenty five, 0:17:32.320 --> 0:17:34.560 And I think this potentially does mean that we are 0:17:34.640 --> 0:17:37.760 seeing a revival of that trade, but there is also 0:17:37.800 --> 0:17:40.520 the potential here for it to be broadened out. 0:17:40.520 --> 0:17:41.840 I mean, as you pointed out. 0:17:41.680 --> 0:17:47.080 Apple has benefited greatly from more clarity regarding the US 0:17:47.240 --> 0:17:49.879 and China and a de escalation there. 0:17:50.080 --> 0:17:52.520 Other tech firms as well also can benefit. 0:17:52.560 --> 0:17:56.480 They've given that their manufacturing bases are so strongly implemented 0:17:56.600 --> 0:17:59.560 in China. So there is a potential for that AI 0:17:59.600 --> 0:18:02.160 trade now, and that's what we were looking for. As 0:18:02.160 --> 0:18:04.919 we started into twenty twenty five before we sort of 0:18:04.960 --> 0:18:09.600 saw all this tariff chaos hit tech socks. So I 0:18:09.600 --> 0:18:13.280 think there is that potential that as we get more clarity. 0:18:12.840 --> 0:18:15.720 Regarding the outlook for tariffs, what. 0:18:15.560 --> 0:18:18.160 This means that we could actually find that that broadening 0:18:18.160 --> 0:18:20.639 out of the AI trade does still take place in 0:18:20.680 --> 0:18:22.240 the latter parts of twenty twenty five. 0:18:24.760 --> 0:18:26.639 Okay, if you honest thing called a Seni analyst, that 0:18:26.680 --> 0:18:29.800 city index financial markets, we are sticking with the images 0:18:29.800 --> 0:18:34.120 on your screen. US President Donald Trump alongside Saudi Arabia's 0:18:34.160 --> 0:18:38.080 crown prints. They've arrived at the Saudi US Investment Forum. 0:18:38.119 --> 0:18:40.600 They're touring the various booths. There are a number of 0:18:40.840 --> 0:18:46.640 technology CEOs in attendance, including Nvidia CEO Jensen Huang. Elon 0:18:46.760 --> 0:18:50.240 Musk has been in stage talking about Starlink's authorization in 0:18:50.280 --> 0:18:54.639 the nation six hundred billion dollars of investment security as 0:18:54.640 --> 0:18:56.480 the headline figure. There are some deals within that. Mike 0:18:56.560 --> 0:18:59.560 Shephard is the editor that leads the intersection of our 0:18:59.600 --> 0:19:04.040 coverage between tech and politics. Mike, the politics part of 0:19:04.080 --> 0:19:08.119 it is whether explicitly we see a blanket deal between 0:19:08.160 --> 0:19:11.439 the US and Saudi Arabia the lead edge semiconductors. 0:19:12.840 --> 0:19:14.960 Well, that is what we're looking for, whether it is 0:19:15.000 --> 0:19:18.359 a blanket deal for one purchase en Mass or really 0:19:18.400 --> 0:19:21.720 in agreement to allow the Saudis to have more access 0:19:22.119 --> 0:19:25.600 to chips on a need basis. And we have the 0:19:25.720 --> 0:19:28.919 new venture from the Saudis called Humane. It was just 0:19:29.000 --> 0:19:31.760 unveiled on Monday. As Jumana highlighted at the top of 0:19:31.800 --> 0:19:34.439 the show, this is a venture that is going to 0:19:34.440 --> 0:19:37.040 be looking for those kinds of chips in larger and 0:19:37.119 --> 0:19:40.320 larger numbers. They've gotten started with a five hundred megawant 0:19:40.359 --> 0:19:43.400 data center that Jensen Wang talked about just an hour 0:19:43.520 --> 0:19:46.800 or so ago, but that will likely be just the start. 0:19:47.119 --> 0:19:50.960 The Saudis are looking to diversify their economy and technology 0:19:51.080 --> 0:19:53.240 is one of the areas that they have chosen to 0:19:53.520 --> 0:19:56.560 place their bets where they are looking to go beyond 0:19:56.760 --> 0:19:59.880 energy and all the familiar things that we've known about 0:19:59.880 --> 0:20:04.480 the Saudias and move into these other areas like technology, 0:20:04.800 --> 0:20:08.960 like healthcare and others that will make their economy durable 0:20:09.119 --> 0:20:11.000 and more diverse over the years of time. 0:20:12.160 --> 0:20:15.080 I mean, all of this is as we see Middle 0:20:15.119 --> 0:20:19.000 East more broadly anticipating deals We know that the trip 0:20:19.080 --> 0:20:21.280 is long. As you mentioned, KASA is going to be visited. 0:20:21.520 --> 0:20:24.120 We know the UAE is as well. Are they all 0:20:24.160 --> 0:20:26.520 after the same thing? Is it the same industry groups 0:20:26.560 --> 0:20:28.520 that continue to be focused on as they make this 0:20:28.560 --> 0:20:31.399 particular group, well, this particular trip across. 0:20:32.800 --> 0:20:36.080 Absolutely, Caro. They are going to be looking at the 0:20:36.119 --> 0:20:41.320 tech hyperscalers, the big chip designers, makers and providers to 0:20:41.480 --> 0:20:46.320 help build and sustain the momentum for their AI ambitions 0:20:46.320 --> 0:20:50.280 and other ambitions in advanced technologies. The way they see 0:20:50.280 --> 0:20:53.119 a data centers don't need to be located only within 0:20:53.160 --> 0:20:57.040 the continental United States. They see their position in the 0:20:57.080 --> 0:21:00.680 world as a place of strength. They see themselves of 0:21:01.160 --> 0:21:04.440 having the energy resources to be able to power those 0:21:05.080 --> 0:21:08.440 data centers and keep them running and power the AI 0:21:08.560 --> 0:21:11.879 revolution not just from the US, but from another spot 0:21:11.960 --> 0:21:12.960