Trump’s trade war casts a shadow on America’s AI boom

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Aggressive tariffs threaten to undermine Silicon Valley’s work on the crucial technology.

President Donald Trump has pledged to make the United States the “world capital” of artificial intelligence, but his aggressive trade tariffs threaten to undermine Silicon Valley’s work on the crucial technology and weaken its competition with China. Trump’s trade levies will drive up the cost of constructing, equipping and operating the data centers that companies such as OpenAI, Google and Microsoft are racing to build to power AI development, according to executives and experts in AI and data center construction. OpenAI CEO Sam Altman said in an interview on Thursday that the company is urgently trying to figure out how the tariffs will affect the cost of running its AI models.

“We’re working around-the-clock on this,” he said. Trump and tech industry leaders see China as America’s primary rival in AI, and the president has said the US must stay ahead to preserve its economic and national security..