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Trump’s new AI action plan targets China and ‘woke’ ideology

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The US artificial intelligence (AI) action plan, released on Wednesday (July 23), focuses on outcompeting China and accelerating the technology’s advancement in the US.

The document, titled Winning the Race: America’s AI Action Plan, essentially gives the industry license to move as quickly as it desires in the name of global competition.

The industry had been eagerly awaiting the long-anticipated plan to understand the direction the Trump administration wants to take on AI and how it aims to differ from the security-focused approach of the Biden era.

Trump also met with top technology leaders at an event in Washington yesterday to discuss the document. The plan outlines the administration’s goals for AI, with specific objectives that officials believe can be completed during a second Trump term.

As reported by Axios last week, the plan, which was called for in the President’s AI executive order issued in January, largely envisions a non-interventionist, pro-growth approach to artificial intelligence.

The report focuses on three main pillars: accelerating AI innovation, building American AI infrastructure, and leading in international AI diplomacy and security.

Four key policies are highlighted in the report: exporting American artificial intelligence; promoting the rapid construction of data centers; ensuring AI innovation and adoption; and free speech for frontier models.

Among the plan’s primary goals are expediting permitting processes and relaxing environmental regulations to speed up the construction of new data centers and factories. The plan denounces “radical climate dogmas” and suggests lifting environmental restrictions, including clean air and water laws.

Many tech giants are moving forward with building new data centers in the US and around the world. This week, OpenAI announced the commissioning of the first phase of its massive data center complex in Abilene, Texas, part of the Stargate project supported by Oracle, which Trump promoted earlier this year. Amazon, Microsoft, Meta, and xAI are also undertaking major projects.

The technology industry had been lobbying for more lenient permitting rules to connect their computing facilities to the power grid.

The action plan states, “The federal government should not allow federal funds related to artificial intelligence to be directed to states with burdensome AI regulations that waste these funds, but it should also not interfere with the rights of states to enact prudent laws that do not excessively restrict innovation.”

The administration will issue a request for information on federal regulations it believes hinder AI innovation.

According to the report, state laws that the Trump administration deems to conflict with federal standards outlined in the Communications Act could be used as a reason to deny funding.

The Office of Management and Budget (OMB) will collaborate with all federal agencies that provide discretionary AI-related funding to ensure they “consider the AI regulatory environment of states” when making funding decisions.

At the federal level, the plan calls for changing procurement standards for AI deemed too liberal or “woke” and updating the AI risk management framework to remove references to DEI, misinformation, and climate change.

The plan aims to provide entrepreneurs and academics with access to computing services through public-private partnerships at the NAIRR, the Department of Commerce, the OSTP, and the National Science Foundation.

The plan also calls on various departments to adopt programs to train people for jobs in AI and to prioritize government investment in new technologies like drones and self-driving cars.

According to the report, “The United States must meet global AI demand by exporting all AI technology (hardware, models, software, applications, and standards) to all countries willing to join America’s AI alliance.”

Trump’s new executive orders focus on “woke” AI, infrastructure, and exports. These orders aim to accelerate the permitting process for AI construction projects, expand US technology exports, and eliminate the concept of “woke” from artificial intelligence.

The Trump administration plans to scrutinize AI models for “ideological bias” and prevent companies whose products do not provide “objective truth” from doing business with the US government.

In the document, the administration announced it would update procurement rules to exclude developers who do not guarantee the impartiality of their systems.

White House technology policy chief Michael Kratsios said the government will “contract with LLM developers whose systems allow for the flourishing of free expression and discretion.”

A senior White House official, speaking to the Financial Times (FT), added that the General Services Administration, which oversees public procurement, will set the rules and decide whether a model violates them.

Trump’s political allies have long accused AI models like OpenAI’s ChatGPT and Google’s Gemini of having a “liberal bias,” even claiming that some companies intentionally train their technology to criticize right-wing positions.

At a promotional event co-hosted by the bipartisan Hill and Valley Forum and the All-In podcast, a business and technology program presented by four tech investors and entrepreneurs, Trump said, “America must once again be a country where innovators are given the green light, not strangled by bureaucracy.”

At the event on Wednesday, Trump stated, “We will add as much electricity capacity as China. Every company will be given the right to build its own power plant.”

The program also featured David Sacks, an AI advisor to Trump and a venture capitalist.

Sacks, a former PayPal executive, has been criticizing “woke AI” for over a year, a concern fueled by the AI image generator Google released in February 2024.

This issue has been frequently raised by X owner Elon Musk, venture capitalist Marc Andreessen, Vice President JD Vance, and other Republicans.

On the other hand, on Tuesday, more than 100 groups, including unions, parent groups, environmental justice organizations, and privacy advocates, signed a resolution rejecting Trump’s industry-focused AI policy and calling for a “People’s AI Action Plan” that would “primarily serve the American people.”

J.B. Branch, a member of Public Citizen who advocates for the accountability of big tech companies and one of the resolution’s signatories, described the plan as a “sellout.”

Branch stated, “Under this plan, while tech giants get sweetheart deals, ordinary Americans will see their electricity bills rise to subsidize the discounted electric power provided to massive artificial intelligence data centers. Americans deserve an AI future based on safety, justice, and accountability, not handouts to billionaires.”

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Musk’s DOGE agency closes after failing to meet $2 trillion US budget savings target, analysis shows

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The Department of Government Efficiency (DOGE), a highly controversial body established in the United States during the administration of Donald Trump, was officially shut down on July 8.

Randy Erwin, president of the National Federation of Federal Employees (NFFE), welcomed the termination of the department, stating that the structure left behind no savings and caused immense damage to public services.

Erwin noted that while Donald Trump and Elon Musk implemented massive cuts to public programs under the pretext of achieving budget savings, no savings were ultimately realized.

The NFFE president further stated that during this process, trillions of dollars in tax privileges were instead provided to the wealthiest segments of society.

Emphasizing that the failure to publish a final activity report following the closure of DOGE amounted to an admission of defeat, Erwin offered the following assessment:

“We welcome the end of DOGE, the most destructive government reform initiative of the past century. DOGE has left a deep scar on the federal workforce. It has now become far more difficult to recruit and retain personnel with the talent and experience necessary for agencies to carry out their duties. The American people will have to pay the price for these errors and imprudence for decades.”

New York Times analysis refutes claims

An analysis published by The New York Times in late 2025, which examined federal procurement and contracting records during the first nine months of Trump’s second term, refuted the budget claims made by DOGE.

The analysis revealed that the budget cuts claimed by Musk and Trump did not yield any savings, but may have instead generated additional costs for the public.

As a result of the cuts implemented by Musk and Trump’s Director of the Office of Management and Budget (OMB), Russell Vought, who both operated within the framework of DOGE, 317,000 federal employees were terminated.

It was reported that similar cutting and restructuring initiatives are continuing at the Department of Agriculture, while unions continue to resist the process.

In early 2025, Musk and Trump had promised to secure $2 trillion in savings by combating budget irregularities, waste, and abuse. However, by the end of the process, the officially claimed savings amount stood at just $215 billion—only one-tenth of the projected target.

Analysts determined that it remains unclear how much of this amount was actually cut from genuine waste categories, noting that the vast majority of the reductions stemmed from the salary budgets of terminated personnel who had been administering critical public services.

The New York Times team wrote that DOGE failed to reach its target of reducing federal spending by $1 trillion before October 2025, and that federal spending actually increased rather than decreased during this period.

According to the analysis, 28 of the 40 largest cuts claimed by DOGE, including the two highest-budget items, turned out to be completely false.

It was determined that these two contracts, which concerned aircraft maintenance and information technology, had a combined value of $7.9 billion and remained fully in effect.

These two items reportedly accounted for a larger budget than the total of the other 29,000 cuts claimed by DOGE.

Terminated employees establish tent city

Following the layoffs, affected federal employees established a tent city in front of Union Station in Washington.

Gathering under the umbrella of an organization called the Federal Unionists Network (FUN), the former public employees established a support center there for shelter, solidarity, and job search assistance.

A statement published on the organization’s website read: “We are here to unite the federal workforce, protect vital services, and defend the public we serve.”

GAO already combats waste

Randy Erwin pointed out that the Government Accountability Office (GAO), an official and bipartisan agency tasked with combating waste and abuse within the federal government, has already been active for many years.

Consequently, he emphasized that there was never any need for a parallel structure like DOGE.

According to one of the latest reports published by the GAO, a gap of $186 billion emerged in the federal budget due to “improper payments,” irregularities, and waste during the 2025 fiscal year, which ended on September 30.

More than 73% of this amount occurred across five key areas: Medicare, Medicaid, SNAP (food assistance), the earned income tax credit, and pandemic-era small business support programs.

The GAO report indicated that between $132 billion and $251 billion in additional savings could be achieved through measures ranging from streamlining the Navy’s shipbuilding processes to preventing duplicate payments in the social security system, though this would require congressional approval.

It was reported that during its operational period, DOGE dismissed or placed on paid leave thousands of federal employees, but because the services performed by this personnel were of critical importance, they later had to be rehired.

This situation was found to have resulted in a major waste of taxpayer funds rather than savings for the public budget.

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Pentagon and Justice Department form joint task force to combat media leaks

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US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.

Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.

The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.

“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.

Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”

The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.

The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.

“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”

Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.

Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.

A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.

Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.

“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”

Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”

Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.

Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.

Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.

Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”

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SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs

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Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.

As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.

The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.

According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.

The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.

In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.

The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”

The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.

According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.

SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.

The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.

In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.

The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.

However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.

According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.

Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.

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