Saudi Arabia Commits £470bn to US AI, Defence and Energy in Historic Investment Drive

In a significant development that will boost economies of the two all-weather friendly nations, Saudi Arabia has unveiled a sweeping £470 billion ($600 billion) investment in the United States by focusing on artificial intelligence (AI), defence, and energy, marking one of the largest economic pledges ever made between the two countries.

AI at the Heart of the Deal

The Saudi-US pact gives fillip to the cooperation in AI as central to the investment is a major push into AI, led by Humain, Saudi Arabia's state-backed AI company which plans to inject more than £7.8 billion ($10 billion) into AI venture capital, targeting partnerships with major US firms and startups.

Humain is already working with American giants like Nvidia, Amazon Web Services and Qualcomm, aiming to boost data centre capacity to 6.6GW by 2034, a move that could position Saudi Arabia as a global AI powerhouse.

The Public Investment Fund (PIF), chaired by Crown Prince Muhammad bin Salman, is driving this initiative. The PIF has committed a £14.7 billion ($18.8 billion) investment in Silicon Valley-focused technologies and infrastructure, underscoring Saudi ambitions to reshape its economy through innovation.

Defence Spending Reinforces Military Ties

As the defence spending details remain classified, about £111 billion ($142 billion) of the investment is directed towards defence, involving arms deals with over a dozen US companies.

The deals strengthens an already strategic military relationship between the two nations as Saudi Arabia remains a key US ally in the Gulf, and these new investments ensure continued defence cooperation amidst rising regional tensions.

Energy Investment Powers Sustainability Goals

The Kingdom is also pouring money into US energy infrastructure. Saudi firm DataVolt will invest £15.7 billion ($20 billion) in AI data centres, green energy grids, and high-efficiency power solutions.

In parallel, US-based GE Vernova will provide gas turbines and other energy technologies valued at £11.1 billion ($14.2 billion), aimed at modernising the American grid and supporting clean energy transitions.

Saudi Arabia's strategic goal is to use energy investment not only to secure economic diversification but also to support its Vision 2030 plan, which seeks to reduce its reliance on oil by embracing renewable and digital futures.

Expanding US–Saudi Economic Integration

Beyond AI, defence and energy, the investment package includes a £3.9 billion ($5 billion) Energy Fund and a similar-sized Aerospace and Defence Technology Fund. Other investments include sports ventures and large-scale infrastructure consulting projects with American firms such as AECOM and Parsons.

These deals are expected to create thousands of US jobs and drive exports. According to White House estimates, more than £1.6 billion ($2 billion) worth of U.S. services will be exported to support Saudi-led initiatives.

'This is not just a series of deals, it's a strategic alignment,' a US official said. 'We're seeing a partnership for the future, not just the present.'

What It Means for Global Tech and Energy Leadership

Saudi Arabia's strategic move reflects a seismic shift in global economic influence. By positioning itself as a leader in both AI and energy, the Kingdom is signalling its transition from oil giant to technology and infrastructure player.

For the US, the partnership offers fresh capital for high-growth industries and reinforces its strategic ties in a rapidly evolving geopolitical landscape.