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Business Times
23-07-2025
- Business
- Business Times
White House unveils AI policy vision to spur US development
[WASHINGTON] The Trump administration called for boosting artificial intelligence development in the US by loosening regulations and expanding energy supply for data centres under new guidelines that also urged withholding funds from states that put burdensome rules on the emerging technology. The so-called AI Action Plan, released by the White House on Wednesday, recommends revamping the permitting process and streamlining environmental standards to speed AI-related infrastructure projects. The blueprint also seeks to make American technology the foundation for AI worldwide while enacting security measures to keep adversaries like China from gaining an edge. 'It is a national security imperative for the US to achieve and maintain unquestioned and unchallenged global technological dominance,' President Donald Trump said in the report. 'To secure our future, we must harness the full power of American innovation.' Mandated by Trump shortly after taking office in January, the 23-page plan marks the administration's most significant policy directive on a technology that promises to reshape the global economy. The president is scheduled later Wednesday to speak at an AI event hosted by the All-In Podcast and a consortium of tech leaders and lawmakers known as the Hill and Valley Forum. Trump plans to sign a handful of executive orders Wednesday to set in motion elements of his AI plan. The expected directives include a plan to use the US International Development Finance Corporation and the Export-Import Bank to support global deployment of American technology. Another would call for all large language models procured by the government to be neutral and unbiased. The blueprint represents the culmination of Trump's campaign promise to position America as the world leader in AI, while dismantling what he characterised as a rules-heavy approach under President Joe Biden. Trump rescinded a 2023 order from Biden that had set extensive safety testing requirements and mandated transparency reports from major AI developers. In its place, Trump demanded a new path on AI policy and set a six-month deadline for White House AI czar David Sacks to create it. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Sacks, a venture capitalist who has emerged as one of the administration's most influential voices on tech policy, was joined in shaping the new policy approach by senior AI adviser Sriram Krishnan and tech policy chief Michael Kratsios. Together, they spent months cultivating detailed input from key AI companies and other industry leaders. Regulatory rollback Under the recommendations, the federal government would ask businesses and the public about existing regulations that hinder AI adoption, with an eye towards rolling back those rules. The White House's budget office would also work with federal agencies that have oversee AI-related funding to consider putting limts on those awards 'if the state's AI regulatory regimes may hinder the effectiveness of that funding.' The guidelines also call on the federal government to only contract with developers whose AI models are deemed 'free from top-down ideological bias' and strip references to misinformation, diversity and equity language, and climate change from risk-management frameworks. 'To win the AI race, the US must lead in innovation, infrastructure, and global partnerships,' Sacks said in a statement. 'At the same time, we must centre American workers and avoid Orwellian uses of AI.' The White House, signalling concern that AI could reshape the labour market, also asks the Education and Labor departments to prioritise skill development and training to assist US workers. It also proposes prioritising investment in theoretical, computational, and experimental research – a request that comes even as the administration has slashed grants to top-tier research universities. Race with China The blueprint suggests countering Chinese AI development by strengthening export controls, including by putting new location verification features in advanced AI chips. The administration also wants to establish a new effort under the Commerce Department to collaborate with the intelligence community to monitor AI developments and chip export control enforcement. The plan also envisions the Commerce Department gathering proposals from the industry on full-stack AI export packages that would allow approved allies to purchase hardware, software, models and applications together. Approved deals would be facilitated by the US Trade and Development Agency, the Export-Import Bank, the US International Development Finance Corporation, among others. The guidelines were released a little more than a week after the administration moved to ease restrictions it had imposed in April barring Nvidia Corp. and Advanced Micro Devices from selling some AI chips to customers in China. The export curbs were relaxed as part of the trade understanding reached with China in June in exchange for Beijing resuming shipments of rare earths to American buyers. Sacks and Commerce Secretary Howard Lutnick have defended the move, saying that letting Nvidia restart shipments of its H20 chips would position the US to compete more effectively abroad and blunt efforts by Chinese tech giant Huawei Technologies to gain a bigger slice of the global market. 'These clear-cut policy goals set expectations for the Federal government to ensure America sets the technological gold standard worldwide, and that the world continues to run on American technology,' said Secretary of State Marco Rubio in a statement. Energy components Trump and other administration officials have also stressed the importance of meeting another tech industry priority: ensuring the US has enough power to run energy-hungry AI data centres. In their view, adequate electricity supply is intertwined with national security, essential to keeping the US ahead of global competitors in the race to dominate artificial intelligence. The plan recommends working to stabilise the existing energy grid and implementing strategies to enhance the performance of the transmission systems. The document also suggests prioritising the interconnection of reliable, detachable power sources that could see nuclear and enhanced geothermal plants deployed to help manage a surge in demand. BLOOMBERG
Business Times
23-07-2025
- Business
- Business Times
White House unveils sweeping AI action plan to boost development
[WASHINGTON] The Trump administration called for boosting artificial intelligence development in the US by loosening regulations and expanding energy supply for data centres under new guidelines that also urged the federal government to withhold funding from states determined to have burdensome regulations on the emerging technology. The so-called AI Action Plan, released by the White House on Wednesday (Jul 23), seeks to assert US dominance over China. The blueprint recommends revamping the permitting process and streamlining environmental standards to speed AI-related infrastructure projects. It also seeks to make American technology the foundation for AI worldwide while enacting security measures to keep foreign adversaries like China from gaining an edge. 'To win the AI race, the US must lead in innovation, infrastructure, and global partnerships,' said White House AI czar David Sacks in a statement. 'At the same time, we must centre American workers and avoid Orwellian uses of AI. This Action Plan provides a roadmap for doing that.' Mandated by President Donald Trump shortly after taking office in January, the 23-page AI Action Plan marks the administration's most significant policy directive on a technology that promises to reshape the global economy. The president is scheduled later on Wednesday to deliver remarks at an event hosted by the All-In Podcast and a consortium of tech leaders and lawmakers known as the Hill and Valley Forum. Trump plans to sign a handful of executive orders Wednesday to set in motion elements of his AI plan, among them a directive to use the US International Development Finance Corporation and the Export-Import Bank to support global deployment of American technology. Another order will call for all large language models procured by the government to be neutral and unbiased. The blueprint represents the culmination of Trump's campaign promises to position America as the global leader in artificial intelligence, while dismantling what he characterised as a rules-heavy approach to AI under President Joe Biden. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'These clear-cut policy goals set expectations for the Federal government to ensure America sets the technological gold standard worldwide, and that the world continues to run on American technology,' said Secretary of State Marco Rubio in a statement. Within days of taking office, Trump rescinded a 2023 order from Biden that had set extensive safety testing requirements and mandated transparency reports from major AI developers. In its place, Trump demanded a new path on AI policy and set a six-month deadline for Sacks to create it. Sacks, a venture capitalist who has emerged as one of the administration's most influential voices on tech policy, was joined in shaping the new policy approach by senior AI adviser Sriram Krishnan and tech policy chief Michael Kratsios. Together, they spent months cultivating detailed input from key AI companies and other industry leaders. Energy components Trump and other administration officials have also stressed the importance of meeting another tech industry priority: ensuring the US has enough power to run energy-hungry AI data centres. In their view, adequate electricity supply is intertwined with national security, essential to keeping the US ahead of global competitors in the race to dominate artificial intelligence. The plan recommends working to stabilise the existing energy grid and implementing strategies to enhance the performance of the transmission systems. The document also suggests prioritising the interconnection of reliable, detachable power sources that could see nuclear and enhanced geothermal plants deployed to help manage a surge in demand. By 2035, data centres are projected to account for 8.6 per cent of all US electricity demand, more than double their 3.5 per cent share today, according to data from Bloomberg NEF. The Trump administration has said expanding the use of coal-fired power, along with electricity from natural gas and nuclear, is needed to help fuel the boom and has warned of future blackouts if that fails to happen. The US Energy Department has already used emergency authority to keep two power plants that were slated to close online, and has signalled additional federal intervention may be forthcoming. BLOOMBERG
Otago Daily Times
09-07-2025
- Business
- Otago Daily Times
Trump sells shift from 'aid to trade' with Africa
US President Donald Trump told leaders from five African nations that he was shifting the US approach to the continent from aid to trade and that the United States is a better partner for Africa than China. Trump, who has shuttered the US Agency for International Development and slashed funding for programmes that help Africans, hosted leaders from Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal for a discussion about business opportunities in their countries. Trump said his administration was committed to strengthening friendships in Africa, which he hoped to visit at some point. "We're shifting from aid to trade," he said at the start of a White House meeting. "There's great economic potential in Africa, like few other places. In many ways, in the long run, this will be far more effective and sustainable and beneficial than anything else that we can be doing together." The African leaders, in turn, heaped praise on the US president for brokering peace deals around the world and expressed support for his receiving a Nobel Prize - a sign that they, like many other foreign leaders, appear to have learned how well flattery goes over with the former New York businessman. Liberian President Joseph Boakai said he supported Trump's efforts to make "America great again," a reference to Trump's political slogan, and encouraged US investment in his country. Trump praised Boakai's English and asked him where he had learned it. Liberia was founded by freed slaves from America and English is its official language; Boakai said he learned it there. "We are not poor countries. We are rich countries when it comes to raw materials. But we need partners to support us and help us develop those resources," said Brice Clotaire Oligui Nguema, president of Gabon. "You are welcome to come and invest. Otherwise, other countries might come instead of you." This week's mini-summit marks the latest effort by successive US administrations to counter perceptions of US neglect of a continent where China has increasingly made economic inroads. "We treat Africa far better than China or anybody else, anyplace else," Trump said. Trump did not visit Africa during his first term, though his wife, Melania, did. Some African politicians labeled Trump a racist in 2018 after he was reported to have described some immigrants from Africa and Haiti as coming from "shithole" countries. In May, Trump confronted South African President Cyril Ramaphosa with explosive false claims of white genocide and land seizures during a tense White House meeting. But Wednesday's meeting did not have any such fireworks. After repeated compliments from the leaders, Trump quipped that he could "do this all day long." Africa experts are waiting for Trump to announce dates for a broader summit with African leaders, possibly in September around the time of the United Nations General Assembly. The US International Development Finance Corporation (DFC) said earlier in the day it would provide project development funding for the Banio Potash Mine in Mayumba, Gabon, helping Gabon reduce its dependence on imports. 'DFC's efforts not only benefit the countries and communities where they invest but also advance US economic interests by opening new markets, strengthening trade relationships, and promoting a more secure and prosperous global economy,' said DFC head of investments Conor Coleman. Trump's government continues to send out letters notifying trading partners of higher tariff rates taking effect on August 1 and has launched a new front in his trade war against members of the BRICS group of developing countries. His administration has also axed huge swaths of US foreign aid for Africa as part of a plan to curb spending it considers wasteful and focus on an "America First" agenda. Those cuts could result in more than 14 million additional deaths by 2030, research published by The Lancet medical journal showed last week. Senior US officials have said that Washington wants to prioritize trade and investment over charity-based assistance and will focus on creating more opportunities for US firms. All five countries invited have abundant natural resources, including manganese, iron ore, gold, diamonds, lithium and cobalt, which are essential for use in current technologies. China has invested heavily across the continent in recent years, especially in resource extraction. But African Union officials question how Africa could deepen trade ties with the US under what they called "abusive" tariff proposals and visa restrictions largely targeting travelers from Africa. The top US diplomat for Africa, Ambassador Troy Fitrell, has dismissed allegations of unfair US trade practices.
Yahoo
13-06-2025
- Business
- Yahoo
Former US envoy for Ukraine Volker: Minerals deal won't bring Ukraine money soon but will shift rhetoric in US
Former US Special Envoy for Ukraine Kurt Volker has said that the newly signed Ukraine-US agreement on cooperation in the field of minerals and natural resources will not yield immediate financial results but plays an important political role. Source: Volker on 13 June during the GLOBSEC-2025 forum in Czechia Details: Volker recalled that the agreement involves the creation of a Recovery Fund, which is expected to receive revenues from future natural resource extraction licences in Ukraine. However, he noted that "the reality is: nothing will go into this fund... for years and years". Instead, he explained that the main purpose of the deal is to shift the narrative in the US – moving away from portraying Ukraine as a charity case and towards a vision in which it can "repay" the aid and provide compensation in the future. Volker stated that "the Biden administration has been spending taxpayers' money limitlessly and having no strategy". Meanwhile, now, he added, there is a strategy, and "a way Ukraine can pay them [the US – ed.] back". He stressed that any financial return from this initiative would only be possible after the war ends and following years of investment in the extraction sector. Commenting on the investment outlook, Volker stated that large parts of Ukraine remain safe for business and that many of the barriers to investors stem not from the war but from the country's business climate. Volker said that it is necessary to clearly identify what is hindering economic development and remove these obstacles. Background: On 8 May, Ukraine's parliament ratified the so-called minerals agreement with the US and approved the creation of a joint Ukrainian-American reconstruction investment fund. President Volodymyr Zelenskyy signed the law on 12 May. On 13 May, Ukraine signed two commercial agreements with the US International Development Finance Corporation as part of the implementation of the ratified investment fund deal. On 4 June, Ukraine's parliament approved amendments to the Budget Code to enable the implementation of the US-Ukraine mineral resources agreement. Support Ukrainska Pravda on Patreon!
Business Times
25-05-2025
- Business
- Business Times
US climate pullback threatens planned debt-for-nature deals
BILLIONS of dollars of debt deals aimed at protecting vital ecosystems from Africa to Latin America are at risk of unravelling or may need reworking amid concerns that crucial US backing is about to dry up under President Donald Trump. The 'debt-for-nature' swaps, which reduce a country's debt in return for conservation commitments, have gained traction in recent years with deals involving the Galapagos Islands, coral reefs and the Amazon rainforest among the most prominent. The US International Development Finance Corporation (DFC) has been a key player, providing political risk insurance for over half of the deals done over the last five years, accounting for nearly 90 per cent of US$6 billion of swapped debt. A source with direct knowledge of the plans said the DFC had about five swaps in the pipeline which are now in question, with CEO-in-waiting Ben Black and US government efficiency chief Elon Musk both criticising its climate work. The source did not specify how much debt was covered by the swaps but pointed out that the last few DFC-backed deals involved over US$1 billion each. Spokespeople for the White House and the DFC did not respond to requests for comment on future DFC involvement in such deals. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up A DFC official who spoke on condition of anonymity confirmed to Reuters it stepped down earlier this year as co-chair of a global task force set up in 2023 to expand the use of debt swaps. US Treasury Secretary Scott Bessent has also hit out at multilateral lenders for climate change work amid a broader US retreat that has seen it withdraw from the Paris Agreement to curb global warming. Angola and Zambia, and at least one Latin American country, are among those whose 'debt-for-nature' swap plans risk needing to be reworked or even abandoned due to DFC uncertainty, four sources that have been directly involved in the projects said. Angolan Finance Minister Vera Daves de Sousa said her country, which is one of the most indebted in Africa and whose rivers feed the Okavango basin vital for endangered elephants and lions, has been talking to the DFC about two potential swaps. One is a debt-for-nature deal, the other a broader 'debt-for-development' swap tied to education and young people. 'We feel openness from them (DFC), but especially on the debt-for-development swap,' de Sousa recently told Reuters. 'We respect their vision,' she added. 'For us, there is no difference – we have opportunities on the development side, and we have opportunities on the nature side.' New reality Generating money for conservation by exchanging costly government bonds for cheaper ones is seen as an obvious choice for smaller nations grappling with heavy debt loads and climate change pressures. UK-based non-profit, International Institute for Environment and Development, estimates that the world's 49 poorest countries seen most at risk of debt crises could swap a quarter of the over US$430 billion they now owe. Given the signals coming from Washington, those that do should drop hopes of DFC support and look at alternatives, said White Advisory managing director Sebastian Espinosa, who has advised Barbados, Belize and Seychelles on such swaps. Those could include credit guarantees from major multilateral development banks, potentially alongside private sector insurers and guarantors, as pioneered by the Bahamas last year. Historically, though, DFC backing has been crucial in scaling up deals, offering up to US$1 billion in political risk insurance. That protects those who buy the new lower-cost bonds if the governments involved fail to make payments. The Inter-American Development Bank, involved in five of the last nine debt-for-nature swaps – sometimes alongside the DFC – declined to comment on whether any of its plans were being affected. Investment firm Nuveen's Stephen Liberatore, who has been a cornerstone investor in some debt swaps, said while substitutes for the DFC could be found, the knock-on effects were yet to be seen. 'What is the price for a private entity (to provide risk insurance) versus a public entity like the DFC?' Liberatore said. 'Does it change the amount of savings (which are then spent on conservation)? That's the ultimate question.' REUTERS
