The Trump administration is clearing a path for two key Persian Gulf allies to pursue their artificial intelligence ambitions — and some of the biggest US tech companies are seizing on that opening with plans to spend billions of dollars in the region.

U.S. chip giant Nvidia and Saudi Arabia announced partnerships on Tuesday as part of the kingdom's plans to develop artificial intelligence and strengthen cloud computing infrastructure with the help of foreign investment.

U.S. chip maker Nvidia will partner with Saudi Arabia’s sovereign wealth fund-owned AI startup Humain and will ship 18,000 chips to the Middle Eastern nation to help power a new data center project. The partnership was revealed Tuesday as part of a White House trip to Saudi Arabia,

Nvidia CEO Jensen Huang's personal net worth jumped to around $120 billion on Tuesday, up from $80 billion last year, as a boom in demand for the company's artificial intelligence chips has powered a steep rally in its shares.

The Trump administration is reportedly making a deal to give Saudi Arabia access to advanced chips from companies such as Nvidia and AMD.