This week, the White House released America’s AI Action Plan. This plan is the clearest signal yet that Washington now views AI as launching the next industrial super-cycle.
The plan lays out the need for the US to establish global AI dominance, drive economic growth, and outmaneuver China in the most important technological arms race of this century.
The 2025 Action Plan is a bet that US innovation, if unshackled, can outpace the rest of the world. That starts by reducing regulation, red tape, and approval timelines for data centers. The details are sparse at this point, especially when it comes to how we’ll power those AI data centers. But I’m eager to see what’s next.
America’s AI Action Plan rests on three strategic pillars:
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Accelerating AI Innovation—Cut red tape, favor open-source and open-weight AI, and make federal R&D a catalyst.
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Building American AI Infrastructure—Fast-track data centers, energy grids, and secure semiconductor fabrication.
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Leading in International AI Diplomacy and Security—Export AI standards, counter China, and plug security export loopholes.
What’s actually new?
These federal policy decisions could define the next decades of innovation and investment. It’s clear the White House sees AI development as its biggest asset—and adversary—in a new Cold War for tech dominance.
It starts with deregulating AI development. Agencies must actively remove rules that slow AI deployment. Federal funding can be withheld from states that try to impose “burdensome” AI rules (which remain loosely defined).
Government contracts flow to AI systems aligned with “objective truth,” not social engineering agendas. The NIST AI Risk Management Framework is being revised to shed requirements on misinformation monitoring, DEI, and climate factors.
Another major pivot: the federal government is throwing its weight behind open-source AI. Through new incentives and access to compute, Washington wants to make open models the global standard—especially in academic and startup environments.
The strategy here is as much about influence as it is about innovation. Open-source dominance allows the U.S. to project technical standards abroad and challenge the rise of opaque, closed AI models from authoritarian regimes. There will be a democratization of access to AI the same way internet access has been a make-or-break factor for individuals and businesses for the past 30 years.
The plan also gives a nod to American workers—emphasizing new high-tech jobs, reskilling, and rapid retraining. Historically, we’ve not been good at this, so I’m hopeful this essential element to AI readiness will move forward.
Likewise, AI’s development is underpinned by our energy grid. We will need to replace or build out new infrastructure at warp speed. Environmental reviews and permitting for data centers and chip fabs are to be accelerated. If this really happens (a big “if” with a lot of obstacles), the next two years could look a lot like the shale boom, only on digital infrastructure.
Who Wins…and Who Should Worry
This new AI landscape creates great opportunity in tech and industry…but it also will create new fault lines among society.
US-based AI innovators (especially those aligned with “objective” standards around free speech and American values) will win out. Cloud, chip, and data center companies should expect faster project approvals and new federal contracts. Workers who can retrain in the AI talent pipeline or skilled trades will fare better than those who pass up the opportunity to use AI.
Investors should consider energy infrastructure, chipmakers, energy suppliers, and secure data center operators. I would be interested to see the rise of specialized trade schools ready to train AI-specific skills. Joe Lonsdale of 8VC wrote a blog post about how he evaluates AI-related investments. You can read his thoughts here.
Meanwhile, states heavy on AI regulation or non-conforming frameworks may see federal funding move elsewhere. Funding and infrastructure projects could be redirected to more ideologically and strategically aligned jurisdictions.
Labor groups and privacy advocates, whose input was minimal in AI policymaking, may ramp up pressure as AI begins reshaping industries. We’re seeing the federal government taking a stronger grasp on both industrial policy and tech development.
This move echoes the space race, but with even broader implications for geopolitics, capital flows, and how Americans work.
My Latest Interview: Are we due for a second tariff meltdown?
On another topic, last week I sat down for a face-to-face interview with Jared Dillian—principal at Jared Dillian Money, commodity trader at Armington Capital, professional DJ, and my longtime business partner and friend.
Talking with Jared is never boring, and this interview is no exception. He brings decades of experience to investing, and he shares his thoughts on macro and markets during our chat.
Jared is convinced something broke in the stock market earlier this year. I won’t give away the reasoning—you’ll want to watch this interview if you think we’re past the tariff meltdown completely.
Click on the thumbnail below to hear Jared and I discuss:
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How the trade war broke the market
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If Trump will shake up the Fed
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The looming resurgence in select value stocks
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Why interest rates aren’t as high as they seem
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The outlook for commodities
You can find an AI-generated transcript of our interview here.
Until next time, thank you for reading.
Ed D’Agostino
Publisher & COO
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out some of our webcasts.
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