In a significant move for the technology sector, former President Donald Trump has signed an executive order on artificial intelligence that represents a major victory for industry lobbyists. The order, signed at the White House on Thursday, prohibits individual states from passing their own laws to regulate AI and threatens punitive measures, such as the withholding of federal broadband funding, for non-compliance.
A Political Payoff for Silicon Valley
This development is widely seen as a dividend for the tech industry's concerted embrace of the Trump administration. Industry leaders and lobbyists have campaigned fervently against AI regulation, arguing it would stifle unprecedented economic growth and cede ground to China in the global AI race. Their efforts have included CEOs presenting gifts to Trump, attending dinners at his Mar-a-Lago resort, and donating to the construction of a new White House ballroom.
Firms like OpenAI, Microsoft, and Nvidia have spent millions on lobbying and have directly advised the administration against allowing state-level regulations to rein in their companies. This marks a shift in messaging from earlier warnings about AI's existential dangers, notably from figures like OpenAI's Sam Altman, to a focus on growth and competition.
Despite bipartisan backlash and public concern over AI's potential threats to infrastructure and copyright, the White House's message is clear: administration priorities favour growth over safety. While state officials question the order's legality and court challenges are expected, the immediate effect is a regulatory green light for AI companies.
OpenAI's Defensive Stance Against Google's Advance
Meanwhile, the competitive landscape is intensifying. Three years after OpenAI's ChatGPT launch, which was built on foundational Google research, Google has caught up and surged ahead with its Gemini model and the wildly popular Nano Banana image tool.
Signs indicate OpenAI is feeling the pressure. Internally, Sam Altman declared a "Code Red" following Gemini 3's November launch. Externally, the company is launching a major recruitment drive for ChatGPT users. This includes running ads during American football games, purchasing billboard space near Google's New York offices and on San Francisco highways, and even seeing Altman appear on The Tonight Show with Jimmy Fallon to discuss relatable topics like parenting.
The Final Frontier for Data Centres
As the physical demand for AI processing power grows exponentially, tech giants are looking beyond terrestrial limits. Companies are already building vast data centres, but the new frontier is outer space.
In early November, the startup Starcloud launched a satellite carrying a powerful Nvidia H100 chip. This month, it announced the chip had successfully trained a Google large language model, Gemma, in orbit. Other startups are pursuing similar "galactic" ambitions.
The motivation is clear. Google's own research initiative, Project Suncatcher, envisions constellations of about 80 solar-powered satellites equipped with AI processors orbiting 400 miles above Earth by 2027. With launch costs falling, Google estimates the running costs of space-based data centres could be comparable to Earth-based ones by the mid-2030s. Space offers a naturally cold environment, eliminating water-cooling needs, and perpetual solar exposure solves electricity demands.
Jeff Bezos's Blue Origin is also working on the concept. Elon Musk has stated his Starlink satellite network will "be doing data centers in space," and SpaceX is planning to upgrade its satellites to facilitate this. With SpaceX eyeing a potential IPO next year with a historic valuation, orbital data centres could become a lucrative new line of business, redirecting the gargantuan investment currently flowing into ground-based infrastructure.
