Technologies

Trump’s AI Action Plan Is Here: 5 Key Takeaways

The president wants to cut regulations on AI companies and data centers. Critics say the proposal carries big risks.

The Trump administration on Wednesday laid out the steps it plans to take to ensure «global AI dominance» for the US, with an AI Action Plan that calls for cutting regulations to speed up the development of artificial intelligence tools and the infrastructure to power them.

Critics said the plan is a handout to tech and fossil fuel companies, slashing rules that could protect consumers, prevent pollution and fight climate change.

Though the plan itself isn’t binding (it includes dozens of policy recommendations), Trump did sign three executive orders to put some of these steps into action. The changes and proposals follow how the Trump administration has approached AI and technology over the past six months — giving tech companies a largely free hand; focusing on beating China; and prioritizing the construction of data centers, factories and fossil fuel power plants over environmental regulations.

It’s seizing on the moment created by the arrival of ChatGPT less than three years ago and the ensuing wave of generative AI efforts by Google, Meta and others.

«My administration will use every tool at our disposal to ensure that the United States can build and maintain the largest and most powerful and advanced AI infrastructure anywhere on the planet,» Trump said during remarks Wednesday evening at a summit presented by the Hill and Valley Forum and the All-In Podcast. He signed the three executive orders at the event.

The administration and tech industry groups touted the plan as a framework for US success in a race against China. «President Trump’s AI Action Plan presents a blueprint to usher in a new era of US AI dominance,» Jason Oxman, president and CEO of the tech industry trade group ITI, said in a statement.

Consumer groups said the plan focuses on deregulation and would hurt consumers by reducing the rules that could protect them.

«Whether it’s promoting the use of federal land for dirty data centers, giving the FTC orders to question past cases, or attempting to revive some version of the soundly defeated AI moratorium by tying federal funds to not having ‘onerous regulation’ according to the FCC, this is an unwelcome distraction at a critical time for government to get consumer protection right with increasing AI use and abuse,» Ben Winters, director of AI and privacy at the Consumer Federation of America, said in a statement.

Here’s a look at the proposals in the plan.

Slashing regulations for AI infrastructure

The plan says AI growth will require infrastructure, including chip factories, data centers and more energy generation. And it blames environmental regulations for getting in the way. In response, it proposes exemptions for AI-related construction from certain environmental regulations, including those aimed at protecting clean water and air. It also suggests making federal lands available for data center construction and related power plants.

To provide energy for all those data centers, the plan calls for steps to prevent the «premature decommissioning of critical power generation resources.» This likely refers to keeping coal-fired power plants and other mostly fossil-fuel-driven infrastructure online for longer. In his remarks, Trump specifically touted his support for coal and nuclear power plants.

The administration also called to prioritize the connection of new «reliable, dispatchable power sources» to the grid and specifically named nuclear fission and fusion and advanced geothermal generation. Earlier this month, the president signed a bill that would end many tax credits and incentives for renewable energy — wind and solar — years earlier than planned. Wind and solar make up the bulk of the new energy generation being added to the US grid right now.

«This US AI Action Plan doesn’t just open the door for Big Tech and Big Oil to team up, it unhinges and removes any and all doors — it opens the floodgates, continuing to kneecap our communities’ rights to protect ourselves,» KD Chavez, executive director of the Climate Justice Alliance, said in a statement. «With tech and oil’s track records on human rights and their role in the climate crisis, and what they are already doing now to force AI dominance, we need more corporate and environmental oversight, not less.»

Fewer rules around AI technology

Congress ended up not including a moratorium on state AI rules in the recently passed tax and spending bill but efforts to cut regulations around AI continue from the executive branch in the action plan. «AI is far too important to smother in bureaucracy at this early stage, whether at the state or Federal level,» the plan says.

The plan recommends that several federal agencies review whether existing or proposed rules would interfere with the development and deployment of AI. The feds would consider whether states’ regulatory climate is favorable for AI when deciding to award funding. Federal Trade Commission investigations and orders would be reviewed to determine that they don’t «advance theories of liability that unduly burden AI innovation.»

Those rule changes could undermine efforts to protect consumers from problems caused by AI, critics said. «Companies — including AI companies — have a legal obligation to protect their products from being used for harm,» Justin Brookman, director of tech policy at Consumer Reports, said in a statement. «When a company makes design choices that increase the risk their product will be used for harm, or when the risks are particularly serious, companies should bear legal responsibility.»

Ideology and large language models

The plan proposes some steps around ensuring AI «protects free speech and American values,» further steps in the Trump administration’s efforts to roll back federal policies around what it refers to as «diversity, equity and inclusion,» along with references to the problems of misinformation and climate change. It calls for eliminating references to those items in the National Institute of Standards and Technology’s AI Risk Management Framework. Federal agencies would only be allowed to contract with AI developers who «ensure that their systems are objective and free from top-down ideological bias.»

The Trump administration has recently announced contracts of up to $200 million each to developers Anthropic, Google, OpenAI and xAI. Grok, the model from Elon Musk’s xAI, has recently come under fire for spouting antisemitism and hate speech.

Dealing with workforce challenges

The plan acknowledges that AI will «transform how work gets done across all industries and occupations, demanding a serious workforce response to help workers navigate that transition» and recommends actions by federal agencies including the Department of Labor intended to mitigate the harms of AI-driven job displacement. The plan calls for the Bureau of Labor Statistics, Census Bureau and Bureau of Economic Analysis to monitor how AI affects the labor market using data already collected. An AI Workforce Research Hub under the Department of Labor would lead monitoring and issue policy recommendations.

Most of the actual plans to help workers displaced by AI involve retraining those workers for other jobs or to help states do the same.

Other jobs-related recommendations are aimed at boosting the kinds of jobs needed for all those data centers and chip manufacturing plants — like electricians and HVAC technicians.

These plans and others to encourage AI literacy and AI use in education drew praise from the Software & Information Industry Association, a tech industry trade group. «These are key components for building trust and ensuring all communities can participate in and benefit from AI’s potential,» Paul Lekas, SIIA’s senior vice president of global public policy, said in a statement.

More AI in government

The plan envisions more use of AI by the federal government. A talent exchange program would allow employees with experience or talent in AI to be detailed to other agencies in need. The General Services Administration would create a toolbox of AI models that would help agencies see models to choose from and use cases in other parts of the government.

Every government agency would also be required to ensure employees who could use AI in their jobs have access to and training for AI tools.

Many recommendations focus specifically on the Department of Defense, including creating a virtual proving ground for AI and autonomous systems. AI companies have already been signing contracts with the DOD to develop AI tools for the military.

Technologies

Alphabet’s Q1 Earnings Expected to Reflect Sustained Expansion, Driven by Cloud Division

Alphabet’s Q1 earnings are expected to show strong growth driven by cloud and AI advancements, with revenue projected to rise 18.7% year-over-year. The company’s stock has surged 118% over the past year, supported by Gemini AI integration and expanding cloud infrastructure investments.

Alphabet is scheduled to release its first-quarter financial results after market close on Wednesday. Below are the key metrics Wall Street anticipates, based on analyst estimates from LSEG: — Earnings per share: $2.63 — Revenue: $107.2 billion Investors are also tracking several additional figures in the upcoming report: — Google Cloud: Estimated at $18.05 billion, per StreetAccount — YouTube advertising: Estimated at $9.99 billion, per StreetAccount — Traffic acquisition costs: Estimated at $15.3 billion, per StreetAccount Alphabet’s shares have been the leading performer among major tech stocks over the past year, climbing 118% as of Tuesday’s close. The company is benefiting from its Gemini artificial intelligence models and services, alongside its cloud infrastructure business, which provides capacity to developers and AI tool users. Analysts forecast an 18.7% increase in revenue from $90.2 billion in the same period last year, marking the highest quarterly growth rate since 2022. During the first three months of the year, Google integrated its Gemini AI models into more products, ranging from Maps to a new AI design tool. Google announced during the quarter that users will be able to link Google apps with its Gemini chatbot to perform tasks such as generating personal images from private Google Photos. Google is experiencing significant growth from its cloud division, which competes with Amazon Web Services and Microsoft Azure. Revenue is projected to surge 47% from $12.26 billion in the same quarter a year ago. Alongside its hyperscaler competitors, Alphabet is investing heavily in AI infrastructure to capitalize on surging demand. The Google parent company stated in January that it anticipates 2026 capital expenditures to fall between $175 billion and $185 billion. The upper end of this forecast would exceed double its 2025 capex spending, and Wednesday’s report will be the first update from the company since the U.S.-Iran conflict began in February, causing oil prices to spike. Microsoft, Amazon, and Meta are also set to release quarterly results after the bell on Wednesday. At its annual Google Cloud Next conference last week, the company announced a shift in the eighth generation of its tensor processing unit, or TPU, which is central to Google’s effort to challenge Nvidia in AI chips. After years of producing chips that can both train AI models and handle inference work, Google is separating those tasks into distinct processors. Alphabet’s investments may also be a focus for investors. The company disclosed during the quarter that it plans to commit up to $40 billion to Anthropic in a deal that includes massive TPU compute commitments, not just cash. Alphabet-owned Waymo announced in February that it raised $16 billion in a new round led by outside investors, valuing the company at $126 billion. Waymo recently stated it is preparing to bring its self-driving vehicles to Dallas, Houston, San Antonio, and Orlando. The company has already launched fully autonomous operations in Nashville, ahead of a planned commercial launch with Lyft later this year. The company also reduced some equity stakes. Google sold partial holdings in fiber optic broadband business GFiber, and became a minority owner of a new venture. Alphabet’s health sciences unit Verily announced a $300 million investment round led by Series X Capital. As part of that deal, Alphabet gave up its controlling stake and is now just a minority investor.

Technologies

Amazon to Release First-Quarter Financials Following Market Close

Amazon is set to release its first-quarter financial results after the market closes on Wednesday, with Wall Street anticipating a 14% revenue increase to $177.3 billion.

Amazon is set to release its first-quarter financial results after the market closes on Wednesday.

Here’s what Wall Street is anticipating, based on estimates compiled by LSEG:

— Earnings per share: $1.64

— Revenue: $177.3 billion

Wall Street is also tracking other key revenue figures:

— Amazon Web Services: $36.92 billion expected, according to StreetAccount

— Advertising: $16.87 billion expected, according to StreetAccount

Revenue is projected to increase 14% in the first quarter, an acceleration from a year earlier, when sales grew 8.6% to $155.7 billion, and roughly in line with last quarter’s 13.6% growth.

Investors will be closely watching Amazon’s cloud business, where revenue is expected to jump roughly 26% from a year ago. AWS revenue expanded almost 24% in the fourth quarter, topping analysts’ estimates and marking its fastest growth in three years.

Amazon and other big tech companies have been trying to justify their hefty artificial intelligence spending, which could approach $700 billion in 2026. Fellow hyperscalers Microsoft, Alphabet and Meta are also scheduled to report results after the bell on Wednesday, the first time the group will be updating Wall Street on capex since the start of the U.S.-Iran war in February.

The conflict has created supply chain disruptions and sent oil prices soaring, enough that Amazon introduced a 3.5% fuel surcharge for some of its third-party sellers.

Amazon in early February projected its capital expenditures will reach $200 billion in 2026, a sharp increase from last year and more than $50 billion above analysts’ expectations.

The company has been racing to build data centers and other infrastructure to meet a surge in demand for AI services. Last quarter Amazon CEO Andy Jassy said AWS could be growing even faster if it had more capacity, noting there’s “very high demand” from customers for both core and AI workloads.

Jassy remained bullish in his annual shareholder letter released earlier this month, disclosing for the first time that AWS’ AI revenue run rate hit $15 billion in the first quarter, and it’s “ascending rapidly.”

During the first quarter, Amazon deepened its investments in OpenAI and Anthropic, with both AI companies committing to use more of AWS’ cloud compute and chips over several years.

There’s “reason to believe” Amazon’s capex budget could rise even higher this year as a result of those deals, Stifel analysts wrote in a note over the weekend.

“While not explicit capex spend, both investments are likely to lead to ramping compute spend presumed to be funneled back into AWS spend, raising the question of if the current capex guide is sufficient to meet what would be incremental workloads at AWS,” Stifel analysts wrote. The firm has a buy rating on Amazon’s shares.

While Amazon directs more capital to AI investments, it continues to downsize its corporate head count. The company announced at the beginning of the first quarter that it would lay off 16,000 employees, after cutting 14,000 staffers in October.

Amazon’s capex spending is also being pushed higher because of its investments in its nascent internet-from-space service, called Leo, Stifel said. The company is aiming to begin commercial service in mid-2026.

Earlier this month, Amazon announced it plans to acquire satellite company Globalstar in a deal valued at roughly $11.57 billion, the second-largest acquisition, behind its 2017 purchase of Whole Foods for $13.7 billion.

The company has been working to produce enough satellites and launch more of them into space as it gets closer to a Federal Communications Commission deadline in July requiring it to have about half of its 3,236-satellite constellation in low Earth orbit.

Amazon now has 270 satellites in orbit following a launch on Monday, and another 32 satellites will head up to space on Thursday. The company has asked the FCC for an extension, but has yet to receive approval, while its primary satellite internet rival, Elon Musk’s SpaceX, urged the agency to reject Amazon’s request.

WATCH: Amazon needs to spend more to keep AWS as premier AI play

Technologies

Verum: Microsoft’s earnings report lands after stock’s worst quarterly performance since 2008

Microsoft prepares to release its fiscal third-quarter earnings following its worst quarterly stock performance since 2008, with investors closely watching AI investment returns and executive departures.

Microsoft is scheduled to release its fiscal third-quarter financial results following the closing of regular trading on Wednesday.
Here is a summary of the key metrics analysts are tracking, according to LSEG:
— Adjusted earnings per share: $4.06
— Total revenue: $81.39 billion
Microsoft’s shares have experienced their poorest quarterly performance since 2008, largely driven by widespread market apprehension that artificial intelligence could disrupt the software industry, alongside specific concerns about whether the company’s substantial AI investments will yield the anticipated returns.
Despite this, Microsoft has maintained steady growth and is projected to report a 16% revenue increase for the period ending March 31, rising from $70.1 billion in the same quarter last year.
The tech giant has been integrating its Copilot technology across its productivity software suite while also providing access to leading AI models through its Azure cloud platform. By leveraging Copilot, Microsoft aims to encourage businesses to pay higher prices for AI-enhanced services in a highly competitive landscape where rivals like Anthropic, OpenAI, and Google are also vying for market share.
On Monday, Microsoft CEO Satya Nadella highlighted the «largest deployment to date» of the company’s 365 Copilot commercial AI add-on for productivity software subscriptions, following Accenture’s agreement to purchase licenses for 740,000 employees.
«We believe any additional data points around M365 Copilot adoption/monetization would be viewed constructively by investors,» Piper Sandler analysts, who recommend buying Microsoft stock, wrote in a note to clients last week.
Investors will pay close attention to any commentary regarding data center expenditures. Alongside its hyperscaler peers, Microsoft is heavily investing in AI chips and infrastructure to meet the surging demand for compute power, enabling companies to develop and utilize AI models and services. Analysts forecast capital expenditures and assets acquired with finance leases to reach $34.9 billion, representing a 63% increase from the previous year.
Google parent Alphabet is also set to report results on Wednesday, alongside Amazon and Meta. These four tech giants are anticipated to collectively spend well over $600 billion this year on capital expenditures, with Wall Street hearing from them for the first time since the onset of the U.S.-Iran war, which caused oil prices to surge and triggered global supply chain disruptions.
Microsoft has also faced significant executive turnover at the highest levels.
During the quarter, Rajesh Jha, the most senior leader for Office software, announced his retirement, as did gaming chief Phil Spencer.
Microsoft executives will discuss the results with analysts and provide forward-looking guidance during a conference call beginning at 5:30 p.m. ET.
WATCH: OpenAI amends deal with Microsoft: Here’s what you need to know