Trump as AI's Fairy Godmother

The Trump Administration’s AI Action Plan: A Vision for Global Dominance

In a significant move, Donald Trump has unveiled his administration’s “AI Action Plan,” a comprehensive 23-page document that outlines the president’s vision for achieving global AI dominance. This plan serves as a roadmap for the United States to lead in the rapidly evolving field of artificial intelligence. Central to this strategy is the belief that AI companies such as OpenAI and Nvidia must be allowed to operate at their maximum potential, with officials like Michael Kratsios, David Sacks, and Marco Rubio emphasizing the need to “Build, Baby, Build!”

The AI Action Plan was directly influenced by an executive order signed by Trump in the first week of his second term. This directive called for the federal government to develop a plan aimed at enhancing America's global AI dominance. Over several months, the Trump administration gathered input from various stakeholders, including AI firms, civil-society groups, and everyday citizens. Prominent tech companies such as OpenAI, Anthropic, Meta, Google, and Microsoft provided extensive recommendations.

The White House has shown a clear preference for the private sector, which has strong ties to the Trump administration. On his second day in office, Trump announced the Stargate Project, a private venture involving OpenAI CEO Sam Altman, Oracle CEO Larry Ellison, and SoftBank CEO Masayoshi Son, with the goal of building billions of dollars’ worth of AI infrastructure in the U.S. Tech executives have made numerous visits to the White House and Mar-a-Lago, and Trump has reciprocated with praise. Officials like Kratsios, who advises the president on science and technology, and Sacks, the White House’s AI and crypto czar, have close connections to the tech industry.

At times, the action plan itself appears to reflect the interests of the tech industry. It describes AI as a catalyst for an industrial revolution, an information revolution, and a renaissance. Many companies have expressed satisfaction with the plan, with OpenAI’s chief product officer Kevin Weil calling it “great work” and Collin McCune from Andreessen Horowitz thanking President Trump. Anthropic also praised the plan, stating it aligns with its policy aims.

The action plan is essentially a bet on the future of AI. If AI leads to significant prosperity and scientific advancements, the plan may help the U.S. achieve these goals faster by removing roadblocks and regulations. However, if AI proves to be a bubble—given its error-prone nature, high costs, and unproven applications—the plan could accelerate a potential bust. In either case, the nation's future seems increasingly tied to Silicon Valley.

Key Pillars of the AI Action Plan

The AI Action Plan is built on three major pillars: enhancing AI innovation, developing more AI infrastructure, and promoting American AI. To achieve these goals, the administration aims to reduce federal and state regulations on AI development, making it easier and more financially viable to build data centers and energy infrastructure. Trump has also signed executive orders to expedite permitting for AI projects and to export American AI products abroad.

The plan recommends reviewing Federal Trade Commission investigations or orders from the previous administration that may hinder AI innovation. It also suggests reducing AI-related funding to states with regulatory environments deemed unfriendly to AI. Additionally, the plan addresses the environmental impact of AI development, proposing to streamline or reduce environmental regulations such as those under the Clean Air Act and Clean Water Act.

Once the red tape is removed, the Trump administration wants to foster a “try-first” culture for AI across American industry. This means building and testing AI products first before assessing their usefulness or risks. The plan encourages both private and public adoption of AI in various domains, including scientific discovery, healthcare, agriculture, and government services. It emphasizes the importance of adopting AI within the Armed Forces to maintain global military preeminence, a move that aligns with the efforts of major AI firms.

Alignment with Industry Goals

The AI Action Plan closely aligns with the broader goals of the AI industry. Companies want to build more energy infrastructure and data centers, deploy AI more widely, and fast-track innovation. OpenAI’s recommendations for the plan, including categorical exclusions from environmental policies and limits on state regulations, echo the final document. Similarly, Anthropic’s recent policy document, “Building AI in America,” includes similar suggestions for building AI infrastructure.

Permitting reform and investments in energy supply, key elements of the final plan, were central asks of Google and Microsoft. While the plan highlights some regulations and safety concerns, these align with efforts already underway by AI firms, ensuring that Silicon Valley can continue to innovate without significant hindrance.

Addressing Intellectual Property Concerns

In his speech, Trump addressed intellectual-property laws, arguing that training AI models on copyrighted books and articles does not infringe on copyright. This stance is crucial given the ongoing legal battles between AI companies and content creators, with over 40 lawsuits filed since 2022. OpenAI, Microsoft, and Google have all requested a copyright exception for AI training, and Trump appears to support this position, although the AI Action Plan itself does not explicitly mention copyright and AI training.

MAGA Priorities and International Competition

The AI Action Plan also reflects some MAGA priorities. It states that the government will contract only with AI companies whose models are free from top-down ideological bias, a nod to Sacks’s focus on combating “woke” AI. The plan also mentions eliminating references to misinformation, Diversity, Equity, and Inclusion, and climate change in a federal AI-risk-management framework. Trump signed an executive order to eliminate “woke, Marxist lunacy” from AI models.

Additionally, the plan notes the importance of preventing the premature decommissioning of critical power generation resources, likely referencing Trump’s suggestion that coal could be used to power data centers. The plan also emphasizes staying ahead of Chinese AI firms, reflecting fears that advanced AI models could give China economic, military, and diplomatic dominance.

The Future of AI in America

As the AI Action Plan moves forward, the influence of generative AI will become more apparent in various aspects of American life, from salaries and schools to air quality and electricity costs. AI companies have been granted many of their wishes, and the industry is being encouraged to move even faster. Silicon Valley has been given permission to accelerate, and the rest of the country is along for the ride.