Trump Declares Victory in AI Race with Bold New Tech Strategy

US unveils sweeping AI Action Plan to outpace China, boosting exports and data centre growth

Trump’s New AI Action Plan Targets Global Tech Dominance

Former President Donald Trump has declared that the United States will "win" the global race in artificial intelligence, as his administration launched an ambitious AI Action Plan aimed at ramping up America's technological edge over China.

Unveiled during the “Winning the AI Race” summit in Washington DC, the plan includes 90 key proposals to accelerate AI development, remove regulatory barriers, and drive international sales of US AI technology.

Main Objectives of the AI Action Plan

The strategy focuses on transforming the US into the undisputed leader in AI by:

• Fast-tracking construction of energy-intensive AI data centres by relaxing environmental regulations.
• Increasing exports of US AI software and hardware to allied nations.
• Streamlining federal oversight to create one unified national AI standard across all states.
• Blocking government contracts for tech firms that do not prove their AI systems are “objective and free of ideological bias.”

Trump’s Message to the World

In a characteristically direct address, Trump declared:

"America is the country that started the AI race… and we are going to win it."

He stressed that the battle for AI dominance with China would define the 21st century, calling for fewer restrictions on AI development to unleash innovation.

Potential Winners from the Plan

Tech and chip firms are expected to be among the major beneficiaries:

• Nvidia and AMD: AI chip exports could surge under the relaxed export rules.
• Alphabet (Google), Microsoft, OpenAI, Meta: These companies may gain from looser data and export policies that favour large-scale model deployment.

Reversal of Biden-Era AI Policies

The Trump administration’s plan represents a sharp U-turn from policies introduced by President Biden, including:

• Scrapping of restrictions on AI chip exports to China.
• Removal of the “AI diffusion rule” which limited foreign access to US AI computing power.
• Repeal of consumer protection rules that promoted fair AI use and curbed misinformation.

Energy Demand and Environmental Concerns

While AI development surges forward, the demand for power in the US has reached new records due to the rapid expansion of AI and cloud data centres.

• Industry leaders are lobbying to speed up energy infrastructure development.
• Environmentalists warn this could lead to increased fossil fuel use and exacerbate climate change.

Market Outlook and Investor Insight

• The policy is expected to boost the valuation of major AI and semiconductor firms in the medium term.
• Loosening red tape may fuel AI start-up activity and venture capital interest.
• However, concerns over environmental impacts and ethical AI standards could trigger regulatory pushback in the future.

Final Take

Trump’s aggressive AI agenda signals a strategic shift focused on speed, scale, and sovereignty. Investors should watch closely as US tech giants capitalise on new export opportunities, though long-term risks around regulation, energy supply, and public trust remain.

Will this approach cement US dominance, or spark a backlash over unchecked AI power?

Sources: (SKY.com, Investing.com, Reuters.com)