Trump Administration Budget Bill Sparks Interest in Defence and AI Opportunities.

The Trump administration's budget bill is expected to further boost interest in defense opportunities and artificial intelligence (AI) investments. Meanwhile, emerging venture capital managers face a mixed outlook, and the New York City Employees' Retirement System has doubled down on climate investing.

The Trump administration's budget bill is poised to significantly boost interest in defense opportunities and artificial intelligence (AI) investments. This move comes as emerging venture capital managers face a mixed outlook, and the New York City Employees' Retirement System has doubled down on climate investing.

Nvidia, a leading AI chip manufacturer, has seen a reversal in the Trump administration's stance on its sales to China. In a recent development, the Trump administration has approved the sale of Nvidia's China-specific AI chips, known as the H20, despite earlier restrictions. This decision was influenced by a meeting between Nvidia's CEO, Jensen Huang, and President Trump, where Huang lobbied for keeping China open for AI chip sales. Although the company will still need government approval for each shipment, the administration has assured Nvidia that licenses will be granted [1].

The venture capital landscape in Q2 2025, as reported by CB Insights, shows a dynamic yet uneven market shaped by AI and cautious investor strategies. Global venture funding reached $97.2 billion across 5,336 deals, a 13% increase from Q1 2025 but a 9% decline in deal volume, marking the lowest deal count since Q4 2016. AI startups continue to command significant attention and investment, capturing 31% of total VC funding. Mega-rounds, deals worth $100M+, accounted for 60% of Q2's funding, driven by blockbuster raises like OpenAI's $40 billion round in Q1 2025 [2].

The U.S. Department of Defense (DoD) has granted contract awards of up to $200 million to several AI companies, including Anthropic, Google, OpenAI, and xAI. The DoD's Chief Digital and Artificial Intelligence Office stated that these awards will help accelerate the adoption of advanced AI capabilities to address critical national security challenges. The companies will work to develop AI agents across various mission areas at the agency [3].

In conclusion, the Trump administration's budget bill is expected to further boost interest in defense opportunities and AI investments. Meanwhile, the venture capital landscape remains mixed, with AI continuing to dominate the funding scene. The New York City Employees' Retirement System's focus on climate investing reflects a broader trend in sustainable and strategic investments.

References:
[1] https://www.livemint.com/technology/tech-news/nvidia-says-trump-administration-will-allow-ai-chip-sales-to-china-but-theres-a-catch-11752565448541.html
[2] https://www.crowdfundinsider.com/2025/07/245141-venture-capital-reports-reveals-ai-dominance-and-shifting-global-trends/
[3] https://www.cnbc.com/2025/07/14/anthropic-google-openai-xai-granted-up-to-200-million-from-dod.html