Making Sense of AI Policy under the Trump Administration

On Tuesday, President Trump is scheduled to deliver another boost for the AI sector at the inaugural Pennsylvania Energy and Innovation Summit in Pittsburgh, spearheaded by Senator Dave McCormick. As we covered previously, AI is closely tied with energy infrastructure, so the summit will gather dozens of CEOs to facilitate an investment spree in data center infrastructure.

Although on a smaller scale, this is quite similar to the public-private partnership (PPP) initiative when President Trump visited Saudi Arabia and delivered $600 billion in mutual investment commitments.

Senator McCormick projects $70 billion in investments. Blackstone alone, a New York-based asset management firm headed by Jonathan Gray, is set to announce $25 billion in both data-center and energy development in Northeast Pennsylvania. These are just small steps building up into a wider picture where AI is key to maintaining the U.S. hegemony.

Another Major Reversal from the Trump Admin

In early April, we described President Trump’s abrupt tariff reversals as a “heavy credibility blow”. This trend continues. From the get-go, it was clear that the U.S. was imposing tariffs from a position of great weakness and technological lag. Not only was there a decades-long bipartisan consensus to build up China into a premier manufacturing hub, but China also has near-total dominance in rare earth elements (REEs) that are vital for the U.S. military industrial complex.

Nonetheless, as an individual nation, the U.S. is still China’s largest trading partner, followed by South Korea and Japan, which are both US-aligned. Accordingly, mid-June negotiations between China and the U.S. led to a compromise framework whereby China received an average tariff rate of 55% on goods, up by 30%, while China maintained its tariffs on US goods at 10%.

However, another major reversal is developing. On Monday, Nvidia’s official blog informed investors that “the U.S. government has assured NVIDIA that licenses will be granted,” referring to the sales of H20 AI chips.

It is no secret that Nvidia CEO Jensen Huang has been displeased with the escalating U.S. policies on chip exports, having noted in May that Nvidia’s market share in China was nearly halved, specifically based on missed H20 series sales. The implication of the reversal is two-fold:

• As the backbone of the AI push for the U.S. and across aligned nations, Nvidia leveraged its monopolistic position.
• China is not only close to matching Nvidia-based AI chips thanks to Huawei, but Singapore-based smuggling of AI chips makes it impractical to enforce export restrictions.

Effectively, export restrictions are accelerating China’s advancements in the development of its domestic AI ecosystem, while weakening Nvidia’s bottom line in the process. Unsurprisingly, NVDA stock price surged, now priced at $171 per share, which is up 7% over a week.

According to WSJ’s forecasting data, the current price level of NVDA shares is still below the average price target of $175.46 per share. The lowest estimate is $100 while the ceiling price target for NVDA stock is $250 per share.

The AI Landscape Summarized

One day after President Trump’s 2nd term inauguration, OpenAI announced the Stargate Project worth $500 billion. This chronological alignment alone signals regime continuity, as new frameworks were ready to be deployed. Together with UAE’s investment firm MGX, Oracle and SoftBank, Stargate represents the foundation for the US-centric AI push, which primarily relies on Nvidia’s supply of AI chips.

However, as evidenced by the presence of AMD CEO Lisa Su at the aforementioned visit of President Trump to Saudi Arabia, it is also clear that AMD (NASDAQ: AMD) will play an important role in building this infrastructure with its Instinct chip series.

Likewise, Super Micro Computer (NASDAQ: SMCI) is an integral part of supplying server solutions for AI data centers, from the US to the Gulf states. Their binding commonality is the demand for AI coming from the federal government in order to ensure regime continuity and maintenance of global hegemony. This is why the World Economic Forum’s PPPs have become so common now and integral with AI and its supporting energy infrastructure.

As we previously covered, related to Oracle’s Chairman Larry Ellison, Palantir and Tony Blair Institute for Global Change (TBI), AI represents an unprecedented force multiplier in geopolitics, weaponization, social engineering, surveillance, simulation, data management and financial markets. What is most likely to emerge is a new layer of governance technology, one that is highly predictive and granular.

This is the reason why AI should have never been framed as a bubble, given that content generation for the masses is just a secondary artifact of AI deployment. Even if it was the primary driver, the rapid development of compute-heavy text-to-video output alone justifies demand for AI data centers and expanded energy infrastructure.

Likewise, Tencent’s AI-powered asset generation is yet to disrupt the video gaming industry and break barriers to entry for developers. Accordingly, investors should view AI as the primary investing umbrella that penetrates all other sectors.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.

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Originally Posted on July 16, 2025 – Making Sense of AI Policy under the Trump Administration