Trump Ditches AI Safety Rules to Beat China in Tech Race

💡 TL;DR - The 30 Seconds Version

👉 Trump signed a 28-page AI plan Wednesday that scraps Biden's safety-focused rules in favor of deregulation to help America beat China in the AI race.

📊 The plan includes 90+ policy changes that cut regulations, fast-track data centers, and require government AI systems to be "free from ideological bias."

⚡ By 2030, data centers could use as much electricity as Japan does today, so the plan rolls back environmental rules to speed construction.

🌍 The plan aims to make American AI the global standard by bundling hardware, software, and models for export to allies worldwide.

⚖️ Business groups praise the plan while 95 advocacy groups released a competing "People's AI Action Plan" focused on worker protections.

🚀 Implementation starts within 6-12 months, marking the biggest shift in federal AI policy since ChatGPT launched in 2022.

Trump signed his AI roadmap into law Wednesday, trading Biden's safety-first approach for a deregulation blitz designed to help America outpace China in the global AI arms race.

The 28-page plan reads like Silicon Valley's wish list. Cut regulations. Fast-track data centers. Export American AI everywhere. And — in a distinctly Trump touch — eliminate "woke" bias from government-contracted AI systems.

"We believe we're in an AI race," said David Sacks, Trump's AI czar, at a White House briefing. "We want the United States to win that race."

The plan delivers more than 90 policy changes across three main areas: boosting innovation, building infrastructure, and spreading American AI globally. But the through-line is clear — regulations are the enemy of progress.

Goodbye Biden, Hello Big Tech

Trump wasted no time scrapping Biden's AI executive order, which focused on safety testing and bias prevention. The new approach flips that script entirely.

Federal agencies will now review their rules and "repeal those that injure AI development," said Michael Kratsios, head of the White House Office of Science and Technology Policy. The administration plans to limit federal funding to states with "burdensome" AI regulations and will task the FCC with evaluating whether state AI laws interfere with federal authority.

The plan also calls for reviewing all Federal Trade Commission investigations launched under Biden "to ensure they do not advance theories of liability that unduly burden AI innovation." Translation: if the FTC was investigating AI companies for antitrust or consumer protection violations, those cases get a second look.

The War on "Woke AI"

Trump's culture war extends into artificial intelligence. The plan requires that AI systems purchased by the federal government be "objective and free from top-down ideological bias."

The Commerce Department will revise the government's AI risk framework to remove references to misinformation, climate change, and diversity, equity and inclusion programs. Federal procurement guidelines will be updated to exclude AI developers who don't ensure their systems are bias-free — as defined by the Trump administration.

This fights a battle that's been brewing since Google's AI image generator created pictures of Black founding fathers last year. "The AI's incapable of giving you accurate answers because it's been so programmed with diversity and inclusion," Sacks said at the time.

The irony isn't lost on critics. An administration claiming AI should be free from bias will decide what counts as bias.

Build, Baby, Build

AI's biggest problem is energy. Training AI models eats enormous amounts of electricity. By 2030, data centers will use as much power as Japan does today

Trump's solution involves sweeping permitting reform. The plan calls for new environmental exemptions for data centers, expanding fast-track permitting processes, and making federal land available for data center construction.

The administration will also explore nationwide Clean Water Act permits for data centers and roll back clean air and water regulations that slow construction. Environmental groups won't be thrilled, but Trump's betting that energy abundance beats green tape.

The plan also targets the electrical grid itself, calling for strategies to "stabilize the grid of today" while "growing the grid for the future." This includes embracing nuclear power, enhanced geothermal, and other "technological frontier" energy sources.

America First, China Last

The plan's international focus centers on one goal: making American AI the global standard before China does.

The Commerce Department will coordinate "full-stack AI export packages" — hardware, software, models, and applications bundled together for allies. The U.S. Trade and Development Agency, Export-Import Bank, and other federal agencies will help finance these deals.

Meanwhile, the administration plans to strengthen export controls on AI chips and close loopholes in semiconductor manufacturing controls. New location verification features on advanced AI chips will help track whether they end up in banned countries.

The plan also calls for countering Chinese influence in international AI governance bodies like the UN and OECD, where Beijing has pushed surveillance-friendly standards.

Industry Cheers, Critics Worry

The U.S. Chamber of Commerce called the plan "forward-looking" and praised its focus on "fixing a regulatory mess created by conflicting state laws." Major AI companies had submitted detailed wishlists during the comment period, many of which made it into the final plan.

But safety advocates worry the pendulum has swung too far. A coalition of 95 groups, including labor unions and privacy advocates, released a competing "People's AI Action Plan" that prioritizes worker protections and public oversight.

"Every time we say, 'What about our jobs, our air, water, our children?' they're going to say, 'But what about China?'" said Amba Kak of the AI Now Institute.

The DeepSeek moment — when a Chinese AI startup shocked markets with a powerful, cheap model — adds urgency to Trump's approach. If China can build competitive AI for a fraction of the cost, the argument goes, America can't afford regulatory luxury.

What Happens Next

Trump will sign several executive orders Wednesday to implement parts of the plan. These include using federal development banks to finance AI exports and requiring government AI contractors to ensure their systems avoid ideological bias.

The plan sets a six-month to one-year timeline for most policies, meaning we'll see results quickly. But the real test comes when companies start building those fast-tracked data centers and exporting AI systems globally.

The administration is betting that a light regulatory touch, abundant energy, and aggressive exports will secure American AI dominance. Critics worry this approach sacrifices safety and fairness for speed.

Why this matters:

• This marks the biggest change in federal AI policy since ChatGPT launched, swapping safety rules for a speed-first approach that could change how AI develops worldwide.

• The plan lets the AI industry police itself while using federal power to spread American AI worldwide — a bet that either wins the tech race or creates huge risks.

❓ Frequently Asked Questions

Q: What specific regulations is Trump cutting for AI companies?

A: The plan removes safety testing requirements, bias reporting mandates, and environmental review processes for data centers. It also limits federal funding to states with strict AI laws and reviews all FTC investigations of AI companies started under Biden.

Q: What does "woke AI" actually mean and how will it be fixed?

A: "Woke AI" refers to systems that consider diversity, climate change, or social justice in their responses. The plan removes these topics from government AI risk frameworks and requires federal contractors to provide "objective" AI systems as defined by the Trump administration.

Q: How much energy will AI actually consume and where will it come from?

A: By 2030, data centers could use as much electricity as Japan consumes today. The plan promotes nuclear power, enhanced geothermal, and other "frontier" energy sources while making federal land available for power generation and data center construction.

Q: Will this make AI cheaper or more expensive for regular consumers?

A: The plan doesn't directly address consumer pricing. However, faster development and reduced compliance costs could lower prices, while increased energy demand for data centers might raise electricity costs. The net effect remains unclear.

Q: How does this compare to Europe's approach to AI regulation?

A: Europe's AI Act requires safety testing, risk assessments, and transparency reports for AI systems. Trump's plan explicitly rejects this "innovation-killing regulatory path" and instead lets companies self-regulate while using federal power to export American AI globally.

Q: Which companies will benefit most from these changes?

A: Major AI companies like OpenAI, Google, Microsoft, and Meta submitted detailed wishlists during the comment period. Data center operators, chip makers, and energy companies also stand to gain from streamlined permitting and increased infrastructure spending.

Q: What happens if other countries don't adopt American AI standards?

A: The plan uses federal development banks and export financing to make American AI packages attractive to allies. It also strengthens export controls on AI chips to prevent China from accessing advanced technology while promoting American alternatives in international bodies.

Q: When will I actually see these changes take effect?

A: Most policies have a 6-month to 1-year implementation timeline. Trump signed related executive orders Wednesday, and federal agencies must review their rules immediately. Fast-tracked data center permits and AI exports should begin within months.