{"id":45856,"date":"2025-01-22T20:52:50","date_gmt":"2025-01-22T20:52:50","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/why-donald-trumps-ai-plan-is-more-complex-than-it-seems\/"},"modified":"2025-01-22T20:52:50","modified_gmt":"2025-01-22T20:52:50","slug":"why-donald-trumps-ai-plan-is-more-complex-than-it-seems","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/why-donald-trumps-ai-plan-is-more-complex-than-it-seems\/","title":{"rendered":"Why Donald Trump\u2019s AI plan is more complex than it seems"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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In a dramatic shift from the Biden administration’s approach, President Donald Trump is signaling a new era of unbridled artificial intelligence development in the United States, discarding previous efforts to balance innovation with safety and transparency. <\/p>\n

Within his first 24 hours back in Washington, Trump rescinded Biden’s sweeping executive order on AI, immediately halting the implementation of key safety and transparency requirements. <\/p>\n

The move has been met with a mixture of cautious optimism from tech leaders and apprehension from experts concerned about the lack of oversight.<\/p>\n

A “just build” approach to AI development<\/h2>\n

Trump’s move to rescind Biden\u2019s AI executive order marks a clear departure from a more cautious approach. <\/p>\n

While the Biden administration sought to ensure US leadership in AI while addressing potential risks, Trump\u2019s administration has adopted a “just build” strategy, focusing on speed of development rather than regulation. <\/p>\n

The shift was praised by some tech leaders attending the World Economic Forum in Davos, while others raised concerns about the potential implications of such a light-touch approach.<\/p>\n

Trump’s plan: billions in funding and a hands-off approach<\/h2>\n

On Tuesday, Trump announced a new $500 billion joint venture led by SoftBank Group Corp., OpenAI, and Oracle Corp. to fund AI infrastructure in the US. <\/p>\n

Softbank\u2019s Masayoshi Son, and tech executives like Sam Altman, and Larry Ellison, joined Trump to announce the venture, with Son pledging an initial investment of $100 billion \u201cimmediately,\u201d followed by future investments to bring the total to \u201cat least\u201d $500 billion in AI projects, including data centers and physical campuses. <\/p>\n

Son hailed the venture as \u201cthe beginning of a golden age,\u201d underlining the level of optimism that the current policy changes have created within the tech community. <\/p>\n

Ellison noted that data centers are already under construction, citing one in Abilene, Texas. <\/p>\n

Trump also stated that his administration would pave the way for investors to pour money into \u201cAI plants,\u201d with little regard for how those data centers are powered.<\/p>\n

A continental divide over AI regulation<\/h2>\n

With these swift moves, Trump’s approach to AI diverges sharply from that of Europe, setting the stage for a clash over the best approach to regulating AI and competing with China. <\/p>\n

The EU, in contrast, has unnerved some leading AI companies by enacting stringent tech legislation focused on privacy and safety. <\/p>\n

The Trump administration, on the other hand, has embraced prominent tech figures such as Elon Musk and venture capitalist David Sacks to help shape its policies on tech and AI.<\/p>\n

The role of Elon Musk: advocate, investor, and regulator?<\/h2>\n

Exactly how hands-off Trump\u2019s AI strategy will ultimately be may depend largely on Musk’s influence. <\/p>\n

While Musk has invested in AI through his startup, xAI, he has also repeatedly warned of its existential risks if left unchecked. <\/p>\n

This creates a dynamic in which a key figure influencing government policy has also cautioned about the potentially dangerous aspects of the technology.<\/p>\n

Tech leaders cautiously optimistic, experts express concerns<\/h2>\n

\u201cIt seems clear that the new administration is going to be encouraging of tech and tech growth,\u201d said Demis Hassabis, chief executive officer of Google DeepMind, in an interview with Bloomberg News in Davos, highlighting a degree of optimism from some tech leaders. <\/p>\n

He added that: <\/p>\n

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The administration is getting advice from the people who really understand what’s happening at the cutting edge.<\/p>\n<\/blockquote>\n

Similarly, OpenAI Chief Financial Officer Sarah Friar told Bloomberg News that the Trump administration has shown “a real willingness to lean in\u201d and \u201cbe very on the economic front foot\u201d regarding technology and AI. <\/p>\n

Alphabet Inc. President Ruth Porat said Trump’s team wants to \u201cclear away some of the impediments to investing\u201d in the data centers needed for AI, further highlighting the degree of cooperation that is developing. <\/p>\n

However, experts like Frank Pasquale, a law professor at Cornell Tech and Cornell Law School, worry about the unintended consequences of winning the \u201cAI war.\u201d <\/p>\n

Pasquale warns that by removing guardrails, \u201cTrump is clearing a path for more investment in artificial intelligence where there\u2019s less risk of regulation,\u201d but \u201cthere was a lot of good reason to have guardrails in place,\u201d highlighting his concern that companies might build unsafe products if left without oversight.<\/p>\n

The looming competition with China<\/h2>\n

In recent months, OpenAI and other companies have urged governments to facilitate massive investments in data centers and energy sources, with OpenAI specifically calling for the construction of massive 5 gigawatt data centers. <\/p>\n

Last week, the Biden administration signed an executive order that mandated federal agencies to lease government land for AI data centers, while also emphasizing the use of clean energy sources. <\/p>\n

Trump, on Tuesday, was asked whether he would rescind this order and he replied \u201cno, I wouldn\u2019t do that. That sounds to me like it\u2019s something that I would like.\u201d <\/p>\n

Nevertheless, Trump is likely to loosen clean energy requirements, and will leave it up to tech companies to decide whether or not they would like to make use of fossil fuels to power their data centers, according to Bloomberg News, who quoted Joseph Majkut, director of the energy security and climate change program at the Center for Strategic and International Studies.<\/p>\n

For the Trump administration, and possibly many within the AI industry, climate and safety are considered secondary to concerns about being outcompeted by China. <\/p>\n

At Davos, Alphabet\u2019s Porat said it’s not \u201ca foregone conclusion\u201d that the US will maintain its lead over China in AI, while OpenAI\u2019s Friar added that China is “absolutely investing in this area\u201d and understands the critical role AI will play in their economy and security. <\/p>\n

DeepSeek, a Chinese startup, recently unveiled an updated AI model that they claim rivals OpenAI’s technology, and its founder recently appeared at a meeting with Chinese Premier Li Qiang, according to the South China Morning Post. <\/p>\n

Alexandr Wang, founder and CEO of Scale AI, wrote in an open letter to Trump about winning the “AI war”, adding \u201cYou have the right team in place to take on this challenge and ensure we maintain our lead against adversaries.”<\/p>\n

The post Why Donald Trump’s AI plan is more complex than it seems<\/a> appeared first on Invezz<\/a><\/p>\n

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