Recalibrating the US AI Race

Talal Abu-Ghazaleh

The Trump administration’s newly unveiled Artificial Intelligence (AI) Action Plan marks a clear pivot toward rapid technological expansion and deregulated innovation, with the stated ambition to win at AI globally. Announced at the “Winning the AI Race” summit, the plan sets out over ninety proposals aimed at expediting AI adoption, streamlining data center construction, and dismantling regulatory frictions.

While such measures signal intent to reassert US leadership in AI development, their implications extend well beyond the domestic market. China is the US’s primary competitor in AI which is now confronted with a reinvigorated American recalibration; one that prioritizes speed and momentum over caution, with a vision to offering a full technology stack, from AI infrastructure to software, as an export package.
Under Biden, the US policy spanned three mandates, competitive edge, economic transformation, and responsible governance. Trump's plan effectively sheds the third, prioritizing open-source access which according to some may catalyze innovation but also unlock a host of security risks. I see that the administration’s decision appears to be well timed as China itself is focusing on open-source models, which the US wants to dominate and assert global leverage. This will allow greater access for AI developers, researchers, and entrepreneurs which will in turn save costs and reduce innovation time.

The plan’s mention of deregulation is a direct response to years of lobbying by tech firms. Tech giants like Nvidia, Meta, and Microsoft now find themselves top beneficiaries of a more permissive ecosystem. Nvidia CEO Jensen Huang, notably present at the AI summit, has pledged $500 billion in domestic AI investment, encouraged by the plan’s facilitation of data center buildouts and software exports. Tech firms have applauded the loosening of federal oversight, which by easing compliance costs and accelerating deployment pipelines makes large scale R&D investments much more attractive.

What I find most striking in all this is the reversal of prior export bans on advanced semiconductors to China. The move signals a complete reversal of policy where the US now positions itself as a supplier of entire technology ecosystems, leveraging commercial interdependence as a tool of influence. By promoting affordability and accessibility of American AI stacks including chips, models, interfaces, the strategy mirrors China's approach for AI dominance. With subsidized, all in one AI offerings, US firms may be able to secure more in emerging markets. If successfully executed, the US blueprint could exert pressure on China's AI governance practices and intensify the race for global adoption and influence.

While the US AI action plan may fuel short term industry momentum, its long-term success will hinge on more than just innovation velocity. Governance gaps, diplomatic challenges, ecological risks of AI infrastructure and export control challenges, risk reducing the intended geopolitical impact of the plan. China's way forward may lie not in reacting to this, but in doubling down on its current efforts which are well founded, dedicated to developing inclusive AI ecosystems and global norm-shaping.