Trump’s Aggressive AI Strategy: How the USA Competes with China in Technology

“What we want to do is, we want to keep it in this country,” Trump said. “China is a competitor, and others are competitors. We want it to be in this country, and we're making it available.

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Alade-Ọrọ̀ Crow

Within 48 hours of taking office, President Donald Trump made it clear that his administration would aggressively pursue advancements in technology, particularly in artificial intelligence (AI), to outpace China. On his first day, Trump revoked an executive order established by former President Joe Biden in 2023, which aimed to regulate the development of powerful generative AI tools while ensuring privacy, civil rights, and national security protections.

The next day, Trump convened with leaders from prominent technology firms, including Sam Altman, CEO of OpenAI; Larry Ellison, chairman of Oracle; and Masayoshi Son, CEO of SoftBank, to unveil a groundbreaking $500 billion private sector investment in AI infrastructure, dubbed Stargate.

During a media event at the White House, Trump stated, “Beginning immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, including the construction of colossal data centers.” The initiative aims to establish up to 10 massive data centers across the United States, with the first already under construction in Texas. This substantial private investment is expected to generate up to 100,000 jobs in the U.S., according to the executives present.

Trump emphasized the importance of keeping AI advancements within the U.S., stating, “We want to keep it in this country. China is a competitor, and others are competitors. We want it to be in this country, and we’re making it available. I will facilitate this through emergency declarations because we have an emergency. We must get this infrastructure built.”

Tech leaders praised the new administration’s commitment to technology. Sam Altman remarked, “I think this will be the most important project of this era. We wouldn’t be able to do this without you, Mr. President.” Janet Egan, a senior fellow at the Center for a New American Security, noted that Trump’s actions reflect a determined approach to maintaining the U.S.’s competitive edge in advanced AI development. “He is poised to partner closely with the private sector to expedite progress and address existing bottlenecks in AI infrastructure, particularly in energy supply,” she added.

OpenAI, the creator of ChatGPT, has previously relied on Microsoft data centers for its computing needs. The firm has engaged with the Biden administration regarding the regulatory challenges surrounding data center planning and permitting. In a recent policy paper, OpenAI outlined its proposals for maintaining America’s global leadership in AI innovation, emphasizing that “Chips, data, energy, and talent are the keys to winning on AI — and this is a race America can and must win.” The paper highlighted that approximately $175 billion is available in global funds for investment in AI projects, warning that failure to attract these funds could result in their diversion to China-backed initiatives, enhancing the Chinese Communist Party’s global influence.

According to Patrick Hedger, director of policy at NetChoice, the Stargate initiative signals a readiness for private capital to engage actively with the new Trump administration. In a series of executive actions on Monday, Trump also rescinded several previous orders limiting fossil fuel extraction and power generation, recognizing that AI data centers require significant energy resources. He indicated a commitment to facilitating Stargate and other investments in new energy generation.

While Trump quickly dismantled many of Biden’s executive orders, he has not yet addressed some of the former president’s AI-related policies. Biden previously took steps to restrict Chinese companies’ access to advanced AI-related technologies, particularly concerning semiconductors and production machinery. Egan observed that both Trump and Biden share a recognition of AI as a national security concern, suggesting future bipartisan efforts to address this critical issue.

Louis Rosenberg, CEO and chief scientist at Unanimous AI, highlighted a bipartisan consensus on the need for rapid yet responsible AI development. He stated, “The accelerating risks around frontier AI are not a partisan issue; both parties acknowledge that significant safeguards must accompany the advancement of increasingly intelligent and flexible AI systems.” Rosenberg anticipates that the Trump administration will implement targeted policies to manage AI risks effectively, contrasting with the broader approach of previous regulations. He concluded, “Ultimately, we must find a way to advance AI development and ensure safety and reliability simultaneously.”

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