Hello, and welcome to TechScape. I’m Blake Montgomery, writing to you from beneath a few inches of snow in New York City. This week in tech: an analysis of the quid pro quo of Donald Trump’s executive order on AI; OpenAI goes on the defensive; and data centers attempt to launch into orbit.
The tech industry got what it paid Trump for
Donald Trump’s executive order, which prohibits states from passing laws regulating AI and threatens punitive action like the withholding of federal broadband funding, is a win for tech industry leaders and lobbyists who have fervently campaigned against AI regulation. It’s also a sign that the tech industry’s embrace of Trump, which has included CEOs presenting him with gifts, attending dinners at Mar-a-Lago and donating to the construction of a new White House ballroom, may be paying dividends.
While tech leaders such as OpenAI’s Sam Altman previously talked about the existential dangers of AI, the industry has shifted messaging during the second Trump administration. Tech companies and their lobbyists now argue that their technology will spur unprecedented economic growth while simultaneously warning that regulation will gift China the lead in the AI arms race. Firms such as OpenAI, Microsoft and Nvidia have spent millions of dollars on lobbying efforts, and executives have advised Trump against letting state laws rein in their companies.
Despite bipartisan backlash to blocking state regulation and widespread public concern over AI’s threats to the power grid and copyright law, Silicon Valley’s efforts appear to have won out. While state officials have questioned the legality of the executive order, and it’s likely to be challenged in court, the message from the White House to AI companies is that growth is more important to the administration than safety.
OpenAI goes on the defensive against Google
Three years since OpenAI released a chatbot (built on Google’s research), Google has caught up. The success of the latest version of Gemini, coupled with the manic popularity of the image editor and animator Nano Banana, has put Google at the forefront of the AI race.
There are signs OpenAI is nervous. First, and most obvious, is that Sam Altman declared a “Code Red” to his employees soon after the November launch of Gemini 3. “We are at a critical time for ChatGPT,” he said.
There are other signs. OpenAI is running ads for ChatGPT during football games to recruit new users. It has purchased billboard space near Google’s large office in the Meatpacking District of New York City and along the highways outside San Francisco. Perhaps Times Square is next.
Altman himself appeared on Jimmy Fallon in an attempt to directly reach mainstream viewers of late night talk shows. He mostly talked about parenting, a far more relatable topic than AI model benchmarks.
Data centers, already…
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