(Reuters) - U.S. chip giant Nvidia ( NVDA ) and Saudi Arabia's sovereign wealth fund-owned AI startup Humain announced a partnership on Tuesday as part of the kingdom's plans to develop artificial intelligence and strengthen cloud computing infrastructure with the help of foreign investment.

The announcement coincides with U.S. President Donald Trump's Gulf tour, where he signed a strategic economic agreement with Saudi Arabia as the oil power rolled out the red carpet for him at the start of a tour of Gulf states aimed at drumming up trillions of dollars in investments.

Saudi Arabia, which is seeking to make its economy less dependent on oil revenue, aims to position itself as a hub for AI and a leading centre for AI activity outside the United States.

"AI, like electricity and internet, is essential infrastructure for every nation," said Jensen Huang, founder and CEO of Nvidia ( NVDA ).

Saudi Crown Prince Mohammed bin Salman on Monday launched Humain, a company to develop and manage AI technologies in Saudi Arabia.

The two companies will leverage Nvidia's ( NVDA ) platforms to establish Saudi Arabia as a "global leader" in AI, GPU cloud computing and digital transformation.

Chaired by bin Salman, Saudi Arabia's de facto leader, Humain will operate under the Public Investment Fund, and offer AI services and products, including data centres, AI infrastructure, cloud capabilities and advanced AI models.