LEGISLATION

Details emerge on Trump’s upcoming AI executive order

Silicon Valley got its Christmas wish in July. President Trump's AI Action Plan, unveiled Wednesday evening, delivers nearly everything tech companies have lobbied for while wrapping deregulation in the flag of national security.

Standing before tech executives, including Nvidia CEO Jensen Huang, Trump declared America would "win" the AI race. The plan delivers Silicon Valley's deregulation wishlist while targeting what conservatives see as ideological bias in AI systems.

The three executive orders tackle distinct areas. One bars federal agencies from purchasing AI tools the government considers ideologically biased. Another fast-track permits for major AI infrastructure projects. The third promotes American AI exports while restricting technology flows to China.

• The administration will collect information on regulations that "hinder AI innovation" and withhold federal funding from states whose regulations reduce deployment effectiveness

• Federal contracts will favor AI companies, ensuring their systems are "objective," with guidelines removing mentions of diversity, equity and inclusion

• Data center construction will face fewer environmental regulations and gain new worker training programs

The timing reflects competitive pressure from Chinese AI firm DeepSeek, which recently shocked the industry by building powerful models with far less money than Silicon Valley thought possible, raising questions about whether massive infrastructure spending guarantees AI leadership.

Trump's approach directly contradicts the Biden administration's October 2023 executive order establishing safety and security standards for AI development. Within hours of taking office in January, Trump rolled back those protections, signaling preference for market-driven solutions over regulatory oversight.

The plan reflects broader tensions between American tech companies and international regulatory approaches. While the European Union has implemented comprehensive AI regulations, Trump's framework explicitly rejects such oversight in favor of systems "free of ideological bias."

This signals the administration's intention to reshape how AI models are trained and deployed. The move comes as tech companies face mounting legal challenges over using copyrighted content to train AI systems.

This plan represents a fundamental bet about technological leadership. The administration argues that speed and scale matter more than safety protocols when competing with global rivals. That logic has historical precedent in American innovation, from the space race to the development of the internet.

The approach creates clear winners and losers. Tech companies receive regulatory relief and faster approval for infrastructure. States with stricter AI rules face potential funding cuts. The question is whether removing guardrails accelerates meaningful innovation or shifts costs from companies to society.

The focus on eliminating "bias" reveals deeper tensions about who controls AI development. Every training decision involves choices about data and perspectives. The administration's approach doesn't eliminate bias so much as make different choices about whose values get embedded in these systems.

The real test will be whether deregulation delivers the competitive advantage Trump promises. If American companies can move faster while maintaining public trust, the strategy succeeds. If safety issues emerge or public confidence erodes, the approach risks undermining the leadership it aims to secure. The outcome depends on whether the technology cooperates with political timelines.

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ECONOMY

OpenAI quantifies ChatGPT's economic impact

OpenAI released its first economic analysis of ChatGPT's impact, drawing on data from 500 million users who send 2.5 billion daily messages. The report quantifies productivity gains from the company's own technology.

Key findings include:

• Teachers save nearly six hours per week on routine tasks

• Pennsylvania state workers complete tasks 95 minutes faster daily

• Entrepreneurs are using ChatGPT to build new companies and startups

• Over 330 million daily messages come from U.S. users alone

The analysis marks OpenAI's entry into economic research, with Chief Economist Ronnie Chatterji leading the effort. The study relies on case studies and user testimonials rather than comprehensive economic modeling.

OpenAI is also launching a 12-month research collaboration with Harvard's Jason Furman and Georgetown's Michael Strain to study AI's broader workforce impacts. This research will be housed in OpenAI's new Washington DC workshop, signaling the company's increased focus on policy engagement.

The timing coincides with mounting regulatory scrutiny over market concentration and legal challenges around training data. OpenAI faces copyright lawsuits from publishers and content creators, while policymakers debate how to regulate AI development.

The report aligns with broader industry projections about AI's economic potential. Goldman Sachs estimates generative AI could boost global GDP by $7 trillion, while McKinsey projects annual productivity gains of up to $4.4 trillion.

However, the analysis focuses on productivity improvements rather than addressing downsides like job displacement or implementation costs. The report acknowledges that "some jobs disappear, others evolve, new jobs emerge" but doesn't quantify these disruptions.

The company frames the research as ensuring AI benefits reach everyone rather than concentrating wealth. OpenAI is clearly positioning itself as a thought leader in debates about AI's societal impact.

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EQUITIES

Big Tech's Wednesday night split screen

Three earnings calls, three completely different vibes. While Google executives celebrated another AI-fueled quarter and IBM quietly delivered solid results, Tesla's Elon Musk was busy making robotaxi promises that sounded more like science fiction than business strategy.

Tesla's reality proved less impressive than Musk's predictions. Vehicle deliveries dropped over 13% while revenue slid for the second consecutive quarter. The company's core auto business faces new headwinds as federal EV tax credits are set to expire in September, potentially forcing deeper price cuts.

Google flexes its AI muscles

Meanwhile, Alphabet delivered the kind of results that make competitors nervous. The search giant crushed expectations with revenue jumping 14% as Google Cloud continued its rampage against Amazon and Microsoft.

But the real story was Google's willingness to spend. The company bumped its 2025 infrastructure investments to $85 billion, essentially doubling down on the AI arms race. CEO Sundar Pichai says that Google plans to outspend everyone to maintain its lead. Cloud revenue surged past $13 billion, while YouTube advertising remained resilient despite concerns about AI competition.

IBM quietly wins

Lost in the Tesla drama and Google's AI theatrics was IBM's steady performance. The legacy tech giant exceeded expectations across the board, with its infrastructure business receiving a surprising boost from companies still purchasing expensive mainframe computers in 2025.

IBM's generative AI book of business has grown to $7.5 billion, proving that even traditional tech companies can ride the AI wave. Sometimes boring wins.

LINKS

• Amazon quietly shuts down its AI research lab in Shanghai

• Taiwan bets on AI to drive $510B in economic growth

• Teens are turning to AI for friendship, advice and mental shortcuts

• OpenAI’s Stargate takes shape as Oracle deal expands in Texas

• Amazon snaps up Bee AI, the wearable that listens to your every word

• Microsoft keeps swiping top AI talent from Google DeepMind

• $93M goes to AI therapy startup from Casper’s co-founder

• Gupshup lands $60M but still shy of unicorn status

• Walmart hires Instacart executive to lead its AI ambitions

• Meta’s new wristband lets you operate computers using gestures

• Murf Studio: Speech-to-voice AI for creating professional voiceovers with adjustable tones and pauses

• Pebblely: AI-powered mockup generator that places your designs onto realistic scenes and product templates

• Fontjoy: AI font pairing tool that helps designers find harmonious typography combinations via GAN-generated suggestions

• quso.ai: Short-form video editor with AI-powered clip detection, subtitles and auto-formatting for social platforms

• Glean: AI Outcomes Manager

• Hypernatural: Product Designer

• CoreWeave: Senior Engineer, ML Infrastructure

• Zapier: Sr. Brand Designer

GAMES

POLL RESULTS

What’s your view on the UK’s decision?

Win (20%)

Short-term gain (29%)

Strategic error (25%)

Too early to judge (26%)