Trump's America Winning the AI Race

What is the "Winning the AI Race" approach for the U.S. to lead in AI Supremacy? And is this the genius plan to accomplish that? 🚨

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• For those of you interested in what’s happening in Washington DC with regards to AI and overall American policy for the future, these are important days. I have been trying to make sense of the Trump Administration’s rehaul of their AI Action Plan.

• About five days ago, the White House released a plan identifies over 90 Federal policy actions across three pillars – with stated emphasis Accelerating Innovation, Building American AI Infrastructure, and Leading in International Diplomacy and Security – that the Trump Administration will take in the coming weeks and months.

Does American have any Genius in AI left to keep its Empire alive?

Quote: (courtesy of Semafor):

At President Donald Trump’s “Winning the AI Race” speech Wednesday, he proposed a rebrand: “I don’t like anything that’s artificial. So could we straighten that out, please? We should change that name. Because it’s not artificial. It’s genius.”

How about let’s not call it Artificial Intelligence, but Genius Intelligence? Would that make the POTUS satisfied? It’s an ambitions document and if you care about AI, you should be aware of it. Also realize that China is on a different AI path. But also some fairly odd things are going on, for instance, The Pentagon bought a $400 million equity stake in rare-earth miner MP Materials. Few realize it, but China also on Saturday released a global action plan for artificial intelligence.

• Meanwhile a lot of AI pundits in the U.S. are writing fairly optimistic takes on the AI action Plan.

How does the United States hope to Win the AI Race?

President Donald Trump announced his administration’s artificial intelligence action plan at the “Winning the AI Race” Summit this week (July 23rd, 2025). The White House released a statement along with a 28-page action plan to “turbocharge” AI development in the United States. All hail visionary Trump.

All-In Podcast:

Full disclosure: The All-In Podcast is a weekly American business and technology podcast hosted by four venture capitalists: Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg. Launched in March 2020 during the COVID-19 pandemic, it features the hosts, who are long-time friends and colleagues, discussing current events, market trends, political issues, and industry insights.

1. Winning the AI Race Part 1: Michael Kratsios, Kelly Loeffler, Shyam Sankar, Chris Power

2. Winning the AI Race Part 2: Vice President JD Vance

3. Winning the AI Race Part 3: Jensen Huang, Lisa Su, James Litinsky, Chase Lochmiller

4. Winning the AI Race Part 4: Scott Bessent, Howard Lutnick, Chris Wright, and Doug Burgum

5. Winning the AI Race Part 5: President Trump on the AI Action Plan

Trump’s Winning on AI Speech July 23rd, 2025

The White House's AI efforts are led by the Assistant to the President for Science and Technology, who also serves as the Director of the Office of Science and Technology Policy (OSTP).

• Michael Kratsios, who also serves as the Director of the White House Office of Science and Technology Policy (OSTP). See his LinkedIn post.

• The twenty-eight-page document contains more than ninety policy recommendations that the administration believes will expand the global sale of U.S. AI technology, speed up the construction of data centers, and reduce “red tape” that has proved an obstacle for the AI industry. (also line the pockets of his friends with lucrative Government and National Defense contracts).

It’s a predictable but concerning document to say the least. This means an unbridled time for AI datacenters and BigTech capex as if it’s a “Manhattan project” for American AI. This isn’t a Space race, it’s bigger - according to those who cover it.

Meanwhile Alphabet earnings seems to support this thesis: Google has significantly increased its capital expenditure (CapEx) for data centers in 2025, specifically to $85 billion (for 2025), to support the growing demand for AI and cloud services. We’ll know a lot more this week as more BigTech companies have earnings and earnings’ calls. More significant spending in Capex is now the norm.

BigTech goes Dark Storm in AI Capex 🌪️

Sundar Pichai, CEO of Alphabet. (photo in 2024)

The POTUS thinks he’s a genius in AI for America’s future.

Donald Trump’s Administration says the U.S. should also win in everything including in Open-source models, and somehow catch up to China in an energy grid (just not with sustainable energy sources).

Trump makes a deal with the future of AI in Ambitious Action Plan

• Read the White House Brief on the event.

Additionally, the Special Advisor for Federated for AI and Crypto, David Sacks, plays a significant role in shaping AI policy, as noted in the executive order from January 23, 2025, which emphasizes removing barriers to AI innovation.

David Sacks is a first generation immigrant to the U.S. (from South Africa) who is a well-known Venture Capitalist with many ties to the financial elite of America who are benefitting the most from Trump’s 2nd term. Today he’s referred to in America as the “AI Czar”. His appointment has guaranteed that Peter Thiel funded companies have gotten a lot of funding in Trump’s second term like Palantir, Anduril, OpenAI and others.

Sacks was the COO and product leader of PayPal very much part of the “Paypal Mafia” that have somehow managed to get political power along with multiple ties within Trump’s Government related to Peter Thiel including the VP and others. Sam Altman’s company, OpenAI, of course also got funding from Founders Fund. So America Winning in AI, really means Trump and his friends, a Billionaire class and various related American Tech tycoons. Trump’s scheme of a Golden Dome Missile Defense System also relates to giving these companies even more lucrative contracts.

Sacks recently had an interview with CNBC on this document.

The Pentagon going all in AI isn’t necessarily about America Winning

What you have to understand is who is in power in the Trump Administration with regards to AI and whose interests do they historically serve. It’s not necessarily those of the American people.

• Trump’s AI Action Plan has a lot to do with containing China. Don’t mention that Meta’s Superintelligence Lab project to poach AI researchers from other labs like OpenAI, Google DeepMind, Apple and others mostly consists of 1st generation Chinese AI Researchers (Chinese talent). Don’t mention either that Qwen and DeepSeek are ahead in Open-source AI models and their agentic capabilities.

“This AI Action Plan is actually a watershed moment. It elevates monopoly capitalism into Tycoon capitalism terribly that will be nearly impossible to reverse. “

Trump’s AI Action Plan also benefits U.S. Corporations

The plans include cutting back AI regulations, rapidly building data centers and semiconductor fabrication plants, and creating AI export packages in partnership with private companies and large Silicon Valley entities. Powerful people include the CEO of Nvidia and Trump taking his advice on some “AI policy” issues.

The Trump administration’s emphasis on building out more datacenters positions this as the only way to “usher in a new golden age of human flourishing.” In fact, it sounds a lot like Sam Altman, one of the favored sons of Peter Thiel. It also guarantees hundreds of Billions will be spent by the likes of OpenAI, Alphabet, Meta, Microsoft and others that appear destined to boosting the stock market and growing out America’s own semiconductor capabilities, even as they rely on Taiwan’s TSMC more and more.

Americans love to warn each other about the threat of China and why winning at all costs should be the priority in AI. Meanwhile China has a pivotal lead in AI talent, growing AI efficiency in building LLMs, and Huawei presenting itself as a future potential threat to Nvidia’s hegemony in AI chips. Warnings from Jensen Huang all around whispering in Trump’s ear and flip-flops on China Nvidia sales, where Trump’s Admin insinuating that it was all just about trade leverage.

OpenAI is working with Softbank and Oracle, while Meta, xAI and others build unimaginably large AI datacenters that will boost demand on America’s power grid like nothing ever seen before without the energy-grid capabilities or advanced planning. Microsoft’s strategy revolves around not just building in the U.S. but datacenters in East Asia and Europe too. This will dramatically increase the AI bull market bubble on the stock market while make America’s ultra financial elite, unimaginably more powerful. This AI Action Plan is actually a watershed moment. It elevates monopoly capitalism into Tycoon capitalism terribly that will be nearly impossible to reverse.

This isn’t about what benefits human civilization, if you haven’t noticed. The White House called the plan Trump’s Visionary AI Action Plan with quotes of praise for the POTUS that felt like a PR announcement. The tone was just, OFF. Exaggerated, corporate, geared to make Billionaires even more powerful in America’s already highly centralized version of Neo-Capitalism.

Silicon Valley has completely taken over Washington and the AI Action Plan is evidence of just who stands to gain and benefit the most. It’s very dangerous, because much of the world will be left behind. The U.S. could leverage their wealth now in a fairly authoritarian way the instruments of AI. Even allies of the United States in 2025 are starting to realize this. This isn’t about doing what’s right for the world, it’s something else entirely.

The Mission

• Removing Red Tape and Onerous Regulation

• Ensure that Frontier AI Protects Free Speech and American Values

• Encourage Open-Source and Open-Weight AI

• Enable AI Adoption

• Empower American Workers in the Age of AI

• Support Next-Generation Manufacturing

• Invest in AI-Enabled Science

• Build World-Class Scientific Datasets

• Advance the Science of AI

• Invest in AI Interpretability, Control, and Robustness Breakthroughs

• Build an AI Evaluations Ecosystem

• Accelerate AI Adoption in Government

• Drive Adoption of AI within the Department of Defense

• Protect Commercial and Government AI Innovations

• Combat Synthetic Media in the Legal System

Praise the Genius of Trump. 🙏 More of this is coming:

More of this:

What will be the cost of higher energy do you suppose for ordinary citizens? Cost of real-estate? Water and dirty energy? No mention of that here. Cost for democracy, wealth inequality, trust in Government?

“We commend the Administration’s actions to unleash investment in AI, semiconductors, and the energy to power it.” - ARM (company, partially owned by Softbank)