With one year back in the White House under his belt, President Trump has completely reshaped America’s approach to artificial intelligence, steering the country in a different direction than the one under the previous Biden administration. Even before the start of his second term, Trump was expected to bring about changes that would benefit the AI industry. It’s safe to say he hasn’t disappointed.
How Has AI Fared Under Trump’s First Year?
The AI industry has made substantial gains during Trump’s first year. As promised in his AI Action Plan, Trump has fought to roll back AI regulations, rapidly expand the number of U.S. data centers and ramp up American AI exports. As a result, tech companies have invested billions of dollars to drive the industry forward, although it could face fierce resistance in 2026.
In late July 2025, Trump announced an AI Action Plan to accelerate AI innovation in the United States, listing a series of goals that include deregulating the industry, increasing the number of U.S. data centers and ramping up American AI exports. Here’s a look at several steps Trump has taken to make his vision a reality, and what the second year of his presidency might hold in store for the technology.
Trump’s Biggest AI Moves in Year One
1. Scaling Back AI Regulations
Trump made good on his promise to roll back AI regulations just two days into his term when he repealed former President Biden’s executive order, which called for AI safety alongside innovation. As a follow-up, Trump established the Department of Government Efficiency to slim down the government by eliminating jobs, likely hampering the ability of federal agencies to properly regulate AI.
Although several states have attempted to fill the void with their own rules on AI, Trump pushed for a moratorium on state AI laws to be added to his “Big, Beautiful Bill” — a measure that was scrapped in the Senate. In December, Trump pressured Republicans to include this same measure in the National Defense Authorization Act, but the motion failed once again to gain enough traction within his own party.
Trump then decided to test the limits of his presidential power by signing an executive order on AI that bans any state AI regulations and threatens to defund states with such laws on the books, opting instead for a single federal framework. The order would make it much easier for AI companies to operate in the U.S. without dealing with red tape, scoring a major victory for Trump’s pro-AI agenda as long as it holds up in court.
2. Expanding AI Infrastructure in the U.S.
Even if Trump’s executive order falls, he’s given his blessing to American tech companies to build more data centers as part of their AI infrastructure. Trump kickstarted this expansion with the Stargate project, a $500 billion venture to develop 20 data centers across the U.S. with the help of titans like Nvidia, Oracle, Microsoft and OpenAI. Since then, AI giants have invested billions of dollars in data center construction, with OpenAI alone expecting to spend trillions of dollars over the next 10 years under its infrastructure plan.
The data center boom hasn’t unfolded without controversy, though. Massive spending has led to fears of circular financing that could be inflating a potential AI bubble. Data centers have also strained local resources and raised concerns about energy consumption, fueling demand for more sustainable energy sources like fusion, solar and hydrogen.
That said, data centers are set to remain a key focus for the AI industry in 2026, with companies fine-tuning their plans to meet more realistic expectations. And if Trump can secure international sources of revenue, the industry will be on solid footing for the year ahead.
3. Ensuring American AI Goes Global
Trump has had to walk a tight rope in winning the AI race with China, balancing national security concerns with American business interests. For instance, he initially implemented strict tariffs and export controls, only to overturn his decision and allow AI chips to flow into China. The move aligns with Nvidia CEO Jensen Huang’s calls for lighter trade restrictions, citing high demand in China for Nvidia’s chips. Although Chinese companies can now access certain U.S. chips, American companies maintain their market share in the country.
International regulations have drawn Trump’s attention as well, particularly in Europe. He directed his ire against European Union laws like the Digital Services Act, arguing that they burden U.S. tech companies with digital taxes and justify retaliatory tariffs. These threats likely played a role in the EU’s decision to consider a digital package that could potentially roll back the AI Act, General Data Protection Regulation and other landmark legislation.
Combining lighter trade rules with fewer international regulations creates the perfect storm for a global American AI revolution. In case this isn’t enough to curry favor among America’s tech elite, Trump has taken further measures to guarantee AI companies a seat at the political table and every reason to support his administration.
4. Cultivating Relationships With AI Leaders
Besides Stargate, Trump has made a concerted effort to transform goodwill among Big Tech into a full-fledged political alliance. Among other things, he’s placed the responsibility of teaching AI skills to America’s youth firmly in the hands of tech companies, transferred majority control of TikTok’s U.S. assets to an ownership group led by Oracle and landed an agreement with Intel that gave the U.S. government a 10 percent stake in the company. These moves altogether bring greater corporate and political power under the authority of major industry players.
Most importantly, strengthening ties between the federal government and the AI sector has emboldened tech companies to more overtly influence the political arena by forming pro-AI super PACs. The plan is to use these vehicles to ultimately help elect pro-AI, tech-friendly candidates to local and national positions. If successful, tech companies could pack Congress with candidates who only pass regulations that favor the AI industry — a win-win scenario for Trump and his Big Tech allies.
These developments feed into Trump’s broader strategy of consolidating political power. However, the obvious connection between Trump and the U.S. tech elite has American voters on edge, hinting at a potential reckoning in Trump’s second year.
What to Expect in Trump’s Second Year
Trump would likely consider the first year of his second term a step in the right direction for his AI agenda, but this progress may be the very spark that ignites a full-on anti-AI resistance. Growing fears around AI-related job losses have already compelled the U.S. Senate to pass a bipartisan bill in an attempt to glean more data on AI’s impact on workforces. Regulation proponents have also launched their own super PACs to help elect candidates who support stricter AI policies.
Neither new AI laws nor anti-AI sentiment seems to be deterring Trump, though. At the end of 2025, the federal government announced its U.S. Tech Force initiative, with the goal of hiring 1,000 early-career technologists to work on modernization and AI-related projects. Meanwhile, AI leaders like OpenAI, Google and Nvidia continue to up the ante in the AI race, establishing the midterms as either a springboard for Trump and his pro-AI camp or a reality check if AI-related angst gets the best of voters.
Frequently Asked Questions
What is President Trump’s AI Action Plan?
Trump’s AI Action Plan is a list of policies and initiatives designed to accelerate the development of artificial intelligence in the United States. These initiatives include eliminating strict regulations on AI, expanding the number of U.S. data centers and creating favorable conditions for American AI exports.
How has Trump’s approach to AI differed from the Biden administration’s?
Former President Biden believed in taking a stronger stance on AI regulation, signing an executive order to promote standards for AI safety and innovation. Not only did Trump repeal this executive order, but he later signed his own executive order that banned any state laws on AI and called for a single federal framework — something that has yet to materialize. Lighter, AI-friendly regulation has clearly become the new policy under Trump.
What is Trump’s stance on the AI trade with China?
Trump initially enforced hard-line export controls and tariffs against China. However, Nvidia CEO Jensen Huang criticized this approach, arguing it only encouraged China to develop its own AI industry. To avoid this scenario, Trump has since reversed course and allowed AI chip exports to flow more freely into China, providing much-needed international business for American AI companies like Nvidia.
