In today’s issue: the Trump administration, Silicon Valley giants, and shaky global alliances—what it all means for America’s AI dominance.

President Trump touched down in the Middle East this week to cement strategic commercial alliances and shine a spotlight on American tech prowess, the outlines of new deals are already coming into focus. Even before any formal agreements are signed.

But this latest chapter in the AI saga unfolding between the Trump administration, Silicon Valley giants, and America's Persian Gulf allies certainly raises my eyebrows a bit—and I'll bet yours too. As someone who has closely watched geopolitical chess matches and corporate maneuvering for decades, I find the scope of these partnerships both intriguing and a touch unsettling.

We’re looking at billions of dollars being pledged by American technology powerhouses like Nvidia, AMD, Amazon, Cisco—even OpenAI—all rushing to seize opportunities in AI infrastructure within Saudi Arabia and the United Arab Emirates.

What strikes me first is just how rapidly the administration is unwinding President Biden’s previous constraints on AI chip exports—which, let’s remember, were put in place precisely to guard against advanced U.S. technologies filtering through to China.

Yet now, under Trump’s watch, Nvidia and Advanced Micro Devices Inc.—truly the crown jewels of next-generation artificial intelligence processing—are gearing up to supply enormous quantities of their advanced chips to firms like Humain in Saudi Arabia or UAE’s G42.

Even if you trust Riyadh or Abu Dhabi implicitly—and many folks in Washington, let’s remember, remain wary—there remains a lingering unease.

Who ensures this hardware doesn’t quietly end up a thousand miles further East? Skepticism, I’d argue, isn’t entirely misplaced.

Now, I understand the strategic logic at play. Trump is clearly leaning into AI diplomacy. David Sacks himself—the White House AI advisor—wasn’t vague about this: he openly tweeted that whoever develops the broadest ecosystem of international alliances will secure dominance in the AI race.

And sure enough, as Trump rubs elbows with Crown Prince Mohammed bin Salman and senior leaders in the UAE, deals and joint ventures keep landing on the table, each flashing eye-watering figures.

All big projects. All born from this administration’s pivot toward open-market AI diplomacy.

Something seismic is happening here—and it’s happening fast.

Yet I can’t help but hear that voice of caution echoing somewhere in my mind.

For years now, Washington’s national-security establishment worried loudly—and with good reason—that advanced U.S. chips could find backdoor routes to Beijing’s labs. Now the administration seems content to place considerable, confident bets on complex supply chains and murky partner networks.

Alongside the exuberance, there remains the blunt reality that Trump’s sudden rollback of Biden’s export limitations has more than a few skeptics sharpening their pencils—yours truly included.

Look, no one’s arguing against strategic partnerships or nurturing alliances.

Such outreach makes geopolitical sense, especially in a technology as transformative as artificial intelligence.

Still, considering these stakes and the gravity of potential vulnerabilities, I have to ask:

Are these lucrative deals jeopardizing long-term U.S. strategic interests amid short-term exuberance?

In a realm as hyper-competitive (and frankly, chaotic) as artificial intelligence, the winners won’t simply be those with the biggest investments—but those who prudently balance innovation, partnership, and security.

DISCLAIMER: None of this is financial advice. This newsletter should be used for discussion, education, and illustrative purposes only and should not be construed as professional financial advice, solicitation, or recommendation