[Source/Observer Network Xiong Chaoyan] Although billionaire Musk has largely withdrawn from the "Department of Government Efficiency" (DOGE) of the Trump administration, there are signs that his companies continue to benefit from the "unprecedented relationship" between him and the US President. Look, Musk also went with Trump on his first foreign visit during a second term.
According to CNN's report on May 13, at the Saudi-US Investment Forum held in Saudi Arabia that day, Musk, called Trump's "first partner," played a special role. Before Trump, the US President, and Crown Prince and Prime Minister Mohammed bin Salman spoke, Musk revealed a new business agreement he had just reached with the Saudi government during a conversation with Saud Communications and Information Technology Minister Abdulaziz Swaha.
"I would also like to thank the Kingdom of Saudi Arabia for approving maritime and aviation applications of 'Starlink'." During the remarks, Musk revealed the latest developments regarding SpaceX's giant low-Earth-orbit satellite internet constellation project. Abdulaziz Swaha also hinted that Musk might introduce Tesla robot taxis to Saudi Arabia, as this electric vehicle manufacturer had just entered the Saudi market in April. In addition, Musk did not forget to promote his other enterprises, such as The Boring Company, a tunneling startup, and xAI, an artificial intelligence company.
CNN believes that Musk's comments about deploying 'Starlink' and Tesla products in Saudi Arabia confirm how his close relationship with Trump has helped his companies reach a broader international stage, and this effect is still ongoing. As early as before Trump's re-election last year, Musk's companies, especially SpaceX, had already benefited greatly from government contracts. To date, neither SpaceX nor Tesla have responded to Musk's remarks in Saudi Arabia.
On May 13, Musk attended a forum event in Saudi Arabia. Yahoo News
It was reported that earlier this year, when Musk was leading DOGE in attempting to significantly cut down American federal agencies, it caused quite a few complaints, which also made Tesla, his company, a target for protests and even vandalism.
At that time, Trump specifically hosted a Tesla "car show" at the White House and even said he would buy one on the spot. Critics believed that this event was essentially a commercial promotion for Tesla. Meanwhile, Attorney General Pam Bondi (Pam Bondi) issuing warnings that those who vandalized Tesla sites could face years in prison not only demonstrated the Trump administration's support for Tesla but also sent a clear signal of protection for it.
The Washington Post's latest report stated that since Trump returned to power, some countries facing tariff threats have already reached agreements involving 'Starlink', and they may view this as a way to strengthen their ties with the White House. According to a memo obtained by the newspaper from the U.S. Department of State, the approval of 'Starlink' operations by the Kingdom of Lesotho in Africa was precisely aimed at demonstrating goodwill and intentions towards accepting American businesses.
NBC reported that since Trump took office, some investigations or restrictions by U.S. federal regulatory agencies against Musk's companies have decreased, such as the case of SpaceX handled by the Department of Justice. The New York Times reported that SpaceX might benefit from increased federal spending, and Musk's The Boring Company is also discussing with the government to help Amtrak build a large-scale project.
Of course, the close relationship between Musk and Trump may also help X, the social media platform that Musk acquired for $44 billion in 2022, known as Twitter.
CNN said that after Musk took over this social media platform, hate speech surged on the platform, and major advertisers fled. However, X has become Musk's "megaphone" and the preferred platform of the Trump administration, with some institutions specifically using X for propaganda.
The report believed that Musk expressed his intention to continue coming and going in Washington, the center of American politics, while assisting the development of DOGE. As long as Trump remains in power, the benefits enjoyed by his companies are likely to persist.
From May 13 to 16, Trump visited Saudi Arabia, Qatar, and the UAE for four days. In addition to discussing regional hot issues such as the Israeli-Palestinian conflict and Iran's nuclear issue, it is expected that the US will sign a number of large business deals with Gulf partners, covering defense, aviation, energy, and artificial intelligence sectors.
According to the Atlantic Council, an American think tank, this Middle East tour by the US President is "distinctive". Because the measure of its success has shifted to whether Trump can build a "closer relationship" with Gulf partners than China. Against this backdrop, the cancellation of negotiations regarding advanced chip exports to the Middle East has become a major focus of attention outside.
While Trump embarked on his Middle East tour, it was reported that the US was negotiating with Saudi Arabia and the UAE to expand AI chip exports. On May 13 local time, The Washington Post cited two people familiar with the negotiations and reported that the Trump administration planned to authorize the sale of hundreds of thousands of advanced AI chips to two enterprises associated with Middle Eastern governments, and relevant agreements might be finalized during Trump's visit to the Middle East region.
Two知情人士透露，除马斯克外，本周还有多位美国科技界的重要人物随特朗普访问中东三国，其中包括英伟达首席执行官黄仁勋和OpenAI首席执行官奥特曼。为了寻求在阿联酋建立数据中心，奥特曼曾多次打出“中国牌”，危言耸听地声称，如果美国不与阿联酋合作，中国就会“取而代之”。
In December 2023, Bloomberg reported that the US government had forced Prosperity7, a venture capital arm of Saudi Aramco, to sell its stake in Rain AI, a Silicon Valley artificial intelligence chip startup. Sam Altman, co-founder of OpenAI, was also among the investors in this Silicon Valley company. It was reported that the forced divestment might have widespread impacts on Saudi Arabia's increasing investments in the US technology industry.
Bloomberg also linked this incident to the relationship between China and Saudi Arabia. It was reported that China was seeking to strengthen ties with the Middle East at the time. In November 2023, China and Saudi Arabia signed a currency swap agreement worth about $7 billion, with Saudi Aramco having invested billions of dollars in China's energy sector, and Saudi Arabia also attracting Chinese tech companies for cooperation.
In this context, Prosperity7's divestment drew attention because the White House was making efforts to curb China's technological advantages, particularly in semiconductors, a key area for future innovations like artificial intelligence. The Committee on Foreign Investment in the United States (CFIUS) reviewed several multibillion-dollar transactions in 2023 due to concerns about national security risks, and the growing scrutiny of Middle Eastern sovereign wealth funds' activities was also seen as targeting entities closely tied to China.
However, Sino-Saudi technological cooperation remains close. Last September, Bandar Alkhorayef, Minister of Industry and Mineral Resources of Saudi Arabia, led a delegation to visit Guangzhou and Hong Kong in China, as well as Singapore, with the aim of enhancing Sino-Saudi relations and exploring joint ventures.
According to the South China Morning Post, "compared to the US", China and Saudi Arabia have strengthened their bilateral relations in recent years. Currently, Saudi Arabia is seeking economic diversification to become an industrial hub in the Middle East; while facing increasing pressure and containment from the US, the attractiveness of the Middle East for Chinese companies looking to expand overseas markets is also growing.
This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7504193576572191258/
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