To protect the huge profits of unregulated AI companies, the Trump administration is trying to bring back a punishment that was stripped from this year’s so-called Big Beautiful Bill. In a December 11th Executive Order titled “Ensuring a National Policy Framework for Artificial Intelligence,” individual states will lose access to the Broadband Equity Access and Deployment program if they establish their own regulations around the use and development of Artificial Intelligence in many circumstances. BEAD provides $42.45 billion in federal grants to U.S. states and territories to build and enable access to critical high-speed Internet connections that many people still lack.
A national set of policy and legislation for artificial intelligence would make much more sense than dozens of competing policies at the state level, but such a development doesn’t seem likely. The Executive Order also makes it clear that “It is the policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI” and, harkening back to the Cold War and the race to space, lays out that the United States must win “the AI race.”
Trillions of dollars are being spent in the AI economy from NVIDIA’s advanced chips to massive datacenters, the salaries of engineers who build and train new models, and AI services being forced into seemingly every product we consume. But the huge expenditures of tech and AI giants are making investors nervous about an impending bursting of the AI bubble. OpenAI alone is going to spend $1.4 trillion in the next 8 years on AI infrastructure for the government, a move that could be seen as the government bailing out a giant company yet again.
