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How Trump upended the Saudi nuclear deal less than 24 hours after its signing

(CNN) — On Wednesday afternoon, officials gathered at the downtown Washington headquarters of the Energy Department for an event more than two decades in the making: the signing of a civilian nuclear agreement between the United States and Saudi Arabia.

Two sets of American and Saudi flags were placed on stage and on the table where Energy Secretary Chris Wright was seated. A large screen beamed in his Saudi counterpart from Riyadh. After months of delay, the arrangement was finally signed.

The Saudis had won much of their wish list for the deal.

But as quickly as it was announced, it seemed to fall apart. Thursday morning, Trump said in a social media post that the deal was subject to a new condition: Saudi Arabia would have to join the Abraham Accords, an initiative dating back to Trump’s first administration that led to several Arab countries normalizing their diplomatic stance toward Israel. Trump also denied that the agreement would allow uranium enrichment.

The president, according to a source familiar with the matter, was already angry over the unveiling of the deal, which Wright had not told Trump he would be announcing.

Trump’s frustration was then exacerbated, sources told CNN, after a flurry of criticism from experts and conservative media outlets. This included skeptical coverage on his preferred channel, Fox News, and on the editorial page of the Wall Street Journal that questioned why the deal was made absent a normalization agreement — something both outlets pointedly noted President Joe Biden had been seeking.

The new condition, which the White House insisted was long a goal of Trump’s and shouldn’t have shocked anyone, surprised the administration’s own nuclear negotiators, for whom the Abraham Accords condition was unexpected, two sources briefed on the matter told CNN.

As confusion took over, White House officials pointed the finger at their colleagues at the Energy Department, according to one source, who said the White House had asked the Energy Department not to roll the agreement out on Wednesday. But Wright, who White House officials have complained in the past got over his skis, went ahead anyway, including in an interview on Fox Business.

The deal, in the mind of some Trump aides, was not finalized since letters required to be sent to Congress hadn’t gone out. And the president and many of his senior staffers were livid at the decision to roll out the deal, the source said.

“President Trump’s energy team is fully aligned, and always has been: the civil nuclear deal being brokered between the United States and Saudi Arabia is contingent on Saudi Arabia joining the successful Abraham Accords, which will help bring true peace to the Middle East,” White House spokesperson Taylor Rogers said in a statement.

The Energy Department stressed its close coordination with the White House. “This is fake news. The Department of Energy has closely coordinated the negotiations and then announcement of these agreements with the White House and the State Department. Any suggestion otherwise is false,” press secretary Ben Dietderich said in a statement, adding that the deal and the Abraham Accords “achieve a common goal — delivering lasting peace through commerce, not conflict.”

The White House’s ire grew when the Thursday press briefing was dominated by questions over the deal. Karoline Leavitt noted that Trump was the “final dealmaker” when asked why the new condition had not been part of Wednesday’s announcement.

Trump’s Truth Social post Thursday morning also blindsided the Saudis, for whom the nuclear deal — which did not include the normalization requirement — had been a major triumph. The accord would permit uranium enrichment on Saudi soil once certain conditions were met while limiting a UN watchdog agency’s ability to inspect suspected covert nuclear sites. CNN has reached out to the Saudi embassy.

A long-awaited deal greeted by largely negative reviews

The move was a last-minute twist in a years-long diplomatic effort.

Nearly two decades after the US and Saudi Arabia first announced their intent to cooperate on nuclear energy, the two countries reached a tentative agreement in October of last year, when Wright and his Saudi counterpart made a joint statement.

The Trump administration submitted a waiver report to Congress soon afterward due to the deal not requiring the Saudis to sign a standard agreement called the Additional Protocol with the International Atomic Energy Agency.

But after the initial waiver request to Congress, the deal languished for months without Trump’s approval to proceed, CNN previously reported. Sources attributed the delay to concerns over the Iran war and fears that Congress could disapprove the agreements.

Energy officials believed they received Trump’s blessing late last week, according to a source familiar with the matter, and the department launched its long-planned media rollout. (The Wall Street Journal first reported the deal’s approval on Tuesday evening.)

Another source noted that while Trump may have blessed a “tentative” bargain, it was not a green light to finalize or unveil the deal.

Early expert reaction to the agreement’s reported terms was largely negative. Nuclear nonproliferation experts were alarmed by the deal’s enrichment provision, as well as by its lack of commitment to the enhanced Additional Protocol safeguards.

Proponents focused on the deal’s commercial benefits and strategic calculus: the Saudis want a nuclear program on their terms, and the US should partner with Riyadh and gain influence over Saudi safety and nonproliferation practices — lest China or Russia step in.

The criticism initially did not deter the administration, which argued that the agreement and its bilateral safeguards “uphold the highest standards of nuclear safety and nonproliferation.” The Energy Department pressed on with its formal signing ceremony Wednesday.

After things changed the next morning, many close to the administration immediately suspected a late intervention from Israeli Prime Minister Benjamin Netanyahu, whose suspicions around a Saudi nuclear program are well known. (Israel, which possesses nuclear weapons, opposes any arrangements that could allow an Arab country to get a nuclear bomb.)

Two Israeli sources told CNN that Netanyahu hoped to influence the deal, with one adding that the prime minister intended to push Trump to include normalization with Riyadh – or at least progress towards it – as part of the deal.

Yet the White House said later that Trump and Netanyahu had not spoken — “Not to my knowledge,” Leavitt told reporters — and that Trump was simply reiterating a long-held stance about Riyadh normalizing diplomatic relations with Israel.

Skepticism from conservative media

The coverage in conservative media proved influential in the president’s decision to block the agreement in its current form, according to people familiar with the matter.

“This deal’s origins are in the Biden Administration, which held out nuclear cooperation as a reward if the Saudis were to join the Abraham Accords,” the Journal’s editorial board — often skeptical of Trump — wrote Thursday. “Riyadh has resisted pressure to do so, but its reward now arrives from the Trump Administration anyway. One has to hope the Saudis have offered something more.”

Fox News, at the top of the 7 a.m. hour, offered skepticism in the same vein. Host Brian Kilmeade called the deal “a bit of a surprise” and noted that such an arrangement was considered during Biden’s administration.

“During the Biden years, they said we’ll think about it. But before we do that, we need you to sign on to the Abraham Accords,” Kilmeade said, sounding puzzled since Prince Mohammed bin Salman got along much better with Trump than with his predecessor.

Another Fox host, Kayleigh McEnany, who served as press secretary during Trump’s first term, also questioned whether Saudi-Israeli normalization was being left out.

“When I was leaving the first Trump administration, I was told we were pretty close to a normalization of relations between Israel and Saudi Arabia,” she said.

Indeed, Biden administration officials did work to advance those normalization efforts and were in intensive negotiations with Saudi officials about the parameters of a civilian nuclear deal that would accompany an announcement normalizing relations with Israel.

But the October 7, 2023, Hamas terrorist attacks in Israel halted that progress. Israel’s response, widely perceived as disproportionate in the Arab world, led Biden-era negotiators to seek “less-for-less” from the prospective nuclear deal, according to the source familiar with the matter. An agreement was never reached.

And since then, Prince Mohammed has plainly stated he cannot agree to diplomatic ties with Israel without a viable pathway to Palestinian statehood.

Yet Trump reimposed that condition in a 7:52 a.m. social media post, mere minutes after the Fox panel discussed the issue.

Leavitt said later that morning that Trump had not spoken to the powerful crown prince — the kingdom’s de facto leader — in the hours before or after his abrupt announcement of new conditions on the deal.

She suggested the terms should not come as a surprise.

“The president has spoken directly with the Saudis about this in numerous conversations in the past, and the administration will continue to engage in those conversations,” she said.

Davis Winkie’s work at CNN is supported by a partnership between Outrider Foundation and Journalism Funding Partners (JFP). CNN retains full editorial control of the reporting.

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What is China’s Kimi K3 and why is the US so rattled by it?

Hong Kong (CNN) — Remember DeepSeek? The Chinese artificial intelligence startup that rattled the US tech industry with its model that nearly matched leading rivals, trained at a fraction of the cost.China may have done it again.The latest Chinese AI model making waves was developed by a lesser-known startup called Moonshot AI. In just two days after launch, Moonshot suspended new subscriptions after demand overwhelmed its computing capacity.The unexpected enthusiasm for Moonshot’s Kimi K3 model stems from its ability to match – and in some cases outperform – its most advanced US competitors, such as the latest iterations of OpenAI’s GPT and Anthropic’s Claude, for free.Now its rise is intensifying an already contentious race between the US and China to dominate cutting-edge AI. Washington has ramped up export restrictions against China in recent years to slow the country’s development of AI and chips that could power its military.After Kimi K3 was released, US officials and Anthropic have again accused Moonshot of distilling American models, a technique in which one AI model is trained using outputs from another. Moonshot has denied the allegations.Still, the fears spreading among US companies and government officials underscore the stakes of the AI rivalry, and its far-reaching implications for economy, defense and national security.More broadly, Kimi K3’s capabilities are renewing questions about the effectiveness of Washington’s tech export curbs. The new model also challenges an industry belief that leading-edge AI requires heavy spending on data centers and the advanced chips that the US has restricted access to.Unlike most American proprietary models, Kimi K3 was released as an open-weight model. That allows developers to download it, modify it, and run it on their own servers for free, positioning it for easier adoption and a wider market globally.Constrained by limited access to AI hardware and investment compared with American firms, China has embraced so-called “open” models, in contrast to US rivals that mostly sit behind paid subscriptions.“Many organisations value the ability to self-host open models, allowing them to retain the weight and control over sensitive data instead of relying solely on closed-model providers,” said Chelsey Tam, senior equity analyst at financial services firm Morningstar.Who is behind China’s latest AI breakthrough?Moonshot AI was founded three years ago by Yang Zhilin, a promising software engineer in his early 30s from China’s Southeastern city of Shantou.He demonstrated potential early on when studying at Tsinghua University, China’s most elite engineering school, under Tang Jie, a professor who would go on to found another prominent AI startup Z.ai in 2019.“He is the most talented and exceptional student I’ve encountered in recent years,” Tang said while recommending Yang for a scholarship in 2014.Yang went to Carnegie Mellon University for his PhD in computer science at under Ruslan Salakhutdinov, a former AI executive at Meta and Apple. By the end of his studies, Salakhutdinov recalled, Yang turned down a job offer by a senior Apple executive who reported directly to Tim Cook.“I remember him telling me that if he didn’t at least try starting his own company, he would regret it for the rest of his life. I respect that, and he was right,” Salakhutdinov said in a post on X.Yang later said the decision came down to two things. “First was the environment. We saw tremendous opportunities, from government and venture-capital support to the advances China had made in education over the past few decades, all of which created favorable conditions for AI startups,” he told state-run media in 2024. “Second, we believed AI represented a massive opportunity.”Yang stood out in China’s AI industry not only for founding Moonshot at the age of 32, making him one of the country’s youngest AI entrepreneurs, but also for choosing to return to China to launch his venture.From the start, Yang had grand ambitions. He told a podcast in 2024 that the startup’s name was a nod to his favorite album by British rock band Pink Floyd, “Dark Side of the Moon,” in the hope that it would “accomplish something that would create enormous value but would also be extremely difficult — much like landing on the moon.”Moonshot quickly reached national fame after releasing its first Kimi model – named after Yang’s English name – in 2023. That same year, Moonshot secured nearly $300 million in its first two funding rounds, according to a 2024 interview with Chinese media.Is it another ‘DeepSeek moment’?The international attention that Kimi K3’s has garnered echoes the rise of DeepSeek in early 2025, when its R1 reasoning model sent shockwaves through the global AI community.This time, K3 delivered performance approaching frontier systems such as OpenAI’s GPT 5.6 Sol and Anthropic’s Claude Fable 5 on various benchmarks, further narrowing the gap between Chinese and American AI models.But analysts say Moonshot’s achievement should be viewed through a different lens.DeepSeek challenged the conventional wisdom that developing an advanced AI model requires massive financial investment and vast computing power, and offered competitive pricing.But K3’s discount to frontier models is much smaller than R1’s was at launch, suggesting its cost advantage may be less significant than DeepSeek’s, according to Ivan Su, director at Morningstar.What K3 demonstrates is that Chinese companies are continuing to build on the success of DeepSeek, and close the gap between Chinese and US AI models, said Poe Zhao, analyst and founder of the newsletter Hello China Tech.“Its broader significance is that DeepSeek increasingly looks like the beginning of a pattern,” he said. “DeepSeek was a surprise. K3 is evidence that China’s progress is becoming more repeatable.”Since DeepSeek, Chinese AI firms like Moonshot, Alibaba and Z.ai are getting more attention for each new model, with the pace of the rollouts speeding up.With K3, Wei Sun, principal AI analyst at market analysis firm Counterpoint Research, said the general gap between Chinese and American models has narrowed to three to six months, though it varies significantly by task.Still, other analysts have expressed reservations toward K3’s true capabilities.“While K3 constitutes progress, we’d hesitate to ascribe it near-parity with American frontier models, such as Fable 5, in real-world tasks,” said Malik Ahmed Khan, senior equity analyst at Morningstar in a research note last Friday. Many open model developers have optimized software performance around benchmarks for better results in the past, he explained.Is it a threat to the US?For American tech companies, free and comparable Chinese models like K3 threaten to undermine their own products.Leading US AI firms Anthropic and OpenAI have long accused Chinese labs, including Moonshot, DeepSeek and Alibaba, of extracting capabilities from their models. Those claims have intensified with the arrival of K3.Huang Zhenxin, Moonshot AI’s head of enterprise business, denied the accusations of distillation in an interview with state-run media on Monday.But that has not stopped new allegations from Washington.“We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,” said Michael Kratsios, Director of the White House Office of Science and Technology Policy, in a Wednesday post on X. “Large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.”Sarah Heck, Anthropic’s policy head, echoed Kratsios in an X post that accused Moonshot of engaging in “IP theft and industrial espionage,” calling it a “national challenge that creates serious national security risks.”CNN has reached out to Moonshot for comment.Treasury Secretary Scott Bessent also reiterated Wednesday that the US could sanction Chinese firms over such IP theft, without mentioning Moonshot or others by name.“When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table,” he said on X, referring to the country’s formal name People’s Republic of China.Most analysts, however, found the distillation accusation against Moonshot unlikely.Sun of Counterpoint said Moonshot would not have had enough time to train its AI model with its rivals’ latest models, which had limited availability before K3’s launch. And distillation alone would not account for Kimi K3’s outperformance, she added.“The timeline is unconvincing,” she said.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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