Trump AI Action Plan Reverses Biden Regulations, Expands Data Center Permits, Challenges 'Woke' AI

President Donald Trump is set to unveil an AI Action Plan this week that intertwines industry-backed policy priorities with cultural critiques of “woke AI,” a move reflecting his administration’s alignment with Silicon Valley allies while fueling partisan debates over artificial intelligence. The plan, developed over six months by tech advisers, reverses President Joe Biden’s regulatory framework and emphasizes expanding AI infrastructure, accelerating global exports, and challenging perceived liberal bias in AI systems [1]. The event, co-hosted by the Hill and Valley Forum and the All-In Podcast—a platform helmed by Trump’s AI adviser David Sacks—signals a shift toward deregulation and a reorientation of U.S. AI strategy [1].

Central to the plan is the easing of permitting for energy-intensive data centers, a demand driven by the surging electricity needs of AI development. Michael Kratsios, director of the White House Office of Science and Technology Policy, emphasized the necessity of boosting domestic energy production, including fossil fuels and nuclear power, to support AI growth [1]. This aligns with major tech firms’ ongoing projects, such as OpenAI’s new Texas data center complex, Oracle’s Stargate initiative, and expansions by Amazon, Microsoft, and Meta. However, the environmental implications are stark: A typical AI data center consumes electricity equivalent to 100,000 homes, with global demand potentially matching Japan’s current consumption by 2030, as highlighted by UN Secretary-General Antonio Guterres [1].

The administration’s approach to AI exports will contrast sharply with Biden’s restrictions on advanced chip sales to China and other countries. Trump’s plan aims to loosen these curbs, citing concerns that Biden’s policies inadvertently bolster China’s AI industry by driving nations to seek alternative suppliers. Recent approvals for Nvidia and AMD to sell advanced chips to China under Trump’s administration underscore this pivot [1]. Meanwhile, Pentagon contracts worth $200 million have been awarded to tech giants, including Elon Musk’s xAI, which positions itself as an alternative to “woke AI” companies. However, xAI has faced scrutiny for Grok chatbot posts that included antisemitic content and praise for Adolf Hitler, complicating its role in the administration’s strategy [1].

Cultural critiques of AI’s “liberal bias” remain a focal point for Trump’s inner circle. Sacks has been vocal in condemning AI systems like Google’s Gemini for generating content perceived as politically progressive, such as AI-generated images of racially diverse Founding Fathers. This critique, amplified by figures like Musk and venture capitalist Marc Andreessen, reflects broader tensions between industry and regulators over AI’s societal impact [1]. The administration’s emphasis on countering “woke AI” contrasts with calls from advocacy groups for a “People’s AI Action Plan” prioritizing public welfare. Over 95 organizations, including labor unions and environmental groups, have opposed Trump’s tech-centric approach, arguing it neglects risks to jobs, privacy, and the environment [1].

The plan’s rollout underscores a stark divide in AI governance. While Trump’s allies advocate for minimal regulation and rapid innovation, critics warn of unchecked corporate influence and long-term social harms. As the U.S. navigates these competing visions, the global race for AI dominance—and the ethical dilemmas it entails—will remain a defining challenge for the administration.

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[1] [title: Trump’s ‘AI Action Plan’ to mix tech industry wishlist with culture war attacks on ‘woke AI’] [url: https://fortune.com/2025/07/23/trumps-ai-action-plan-tech-industry-wishlist-culture-war-attacks-woke-ai/]