Trump reelected, AI market in frenzy

Donald Trump, the 45th president of the United States, has won the recent election and is set to return as the 47th president after a four-year hiatus with 46th President Joe Biden at the helm. Any administration change brings the potential for policy shifts, and Trump has not been shy about vocalizing how he will make significant changes to America’s economic policies. These changes will trickle down in all areas, including emerging technologies like artificial intelligence (AI).

The upcoming Trump administration is expected to adopt a light-touch regulatory approach, which could mean a more open environment for U.S.-based tech companies to innovate without as many constraints. Trump has emphasized strengthening the American industry and protecting production, which is likely to influence the AI industry. One area that comes to mind immediately is the easing of restrictions established through Joe Biden’s executive order on AI, which created reporting and regulatory requirements.

In addition, Trump’s focus on tariffs and trade restrictions to protect production may impact the semiconductor industry—which is integral to AI development. Companies like NVIDIA (NASDAQ: NVDA), a leader in U.S. chip production, could benefit from policies limiting foreign competition, making it more challenging for global giants like Taiwan Semiconductor (NASDAQ: TSM) to operate as freely in the United States.

Although these are only projections of what we can expect, the policy changes from the White House in 2025 will leave a mark on the AI and tech landscape. As the administration’s approach to tech regulation becomes clearer, this will be something to watch in the months ahead.

AI chip financing frenzy

Despite an otherwise floundering investment environment, AI continues to attract considerable investment, even though the sector’s profitability remains elusive. This week, reports revealed that several major investment firms are debt financing “neo-cloud” providers—cloud service companies dedicated to renting out GPU compute power, which is essential for AI workloads.

GPUs have become a hot commodity in this AI boom, given that they’re crucial for training and running AI models. However, the high demand for GPUs has led to a supply shortage, leaving many companies scrambling to secure enough resources for their AI needs. Recognizing an opportunity, Wall Street and large banks have stepped in, offering loans to neo-cloud providers. These loans are collateralized by the providers’ current GPU stockpiles. In other words, if a company defaults, the lender can take the providers’ GPUs, as well as the service contracts they have with their customers.

These debt-financing deals indicate the frenzied state of the AI market and the lengths companies will go to obtain resources in this current environment. By using their GPU assets as collateral, neo-cloud providers secure the funds to buy more GPUs, increasing their valuation and capacity to secure additional loans. Although this financing loop allows cloud providers to scale rapidly, this circular financing model will likely be a red flag in hindsight, especially if a market downturn or profitability becomes a concern. In my opinion, it raises questions about whether this is a sign that the overall market for AI has overheated.

Google accidentally leaks new AI web assistant

Google (NASDAQ: GOOGL) recently gave the public an accidental sneak peek of its upcoming AI web assistant, internally named “Jarvis.” This name is probably inspired by the fictional character in the Marvel Comic Universe Iron Man’s AI assistant, J.A.R.V.I.S.—Just a Rather Very Intelligent System. Google’s Jarvis was mistakenly listed in the Chrome extension store, where some users briefly had access to download it. Google quickly removed it from the store, and those who downloaded it found that they couldn’t use it due to permission restrictions.

Jarvis is reportedly designed to be a web companion powered by Google’s Gemini algorithm that can help users automate everyday tasks on the Internet, from gathering research to making purchases or booking travel. The concept of such an AI assistant isn’t new; major tech companies are all exploring ways to provide a background assistant that seamlessly supports user tasks. For example, Apple (NASDAQ: AAPL) has been developing “Apple Intelligence,” while Microsoft’s (NASDAQ: MSFT) Copilot aims to offer similar functionalities.

In theory, these autonomous AI tools sound like a good idea—at least to me. They promise convenience and productivity by handling time-consuming tasks independently. However, beyond the privacy concerns some users might feel about ever-present AI on their personal devices, I wonder if users will take full advantage of these tools. Many people use AI chatbots for simple tasks, like as a replacement for a traditional search engine, which leads me to believe that advanced features are probably underutilized.

While companies envision a future where AI assistants handle complex tasks independently, the reality is that these tools may not meet users where they are or equip them with the skills needed to make the most of these features. Another issue these assistants are likely to encounter is reliability. For instance, Anthropic ran trials with its own AI companion, only to find that the tool eventually lost track of its assigned tasks, which limited its effectiveness. Beyond that, many AI systems still require some level of human oversight, especially when an AI’s decision-making could have real-world consequences, such as making a purchase or booking a trip. Given these concerns and limitations, AI assistants like Jarvis may face challenges and require user education before they see mass adoption.

In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.

Watch: Improving logistics, finance with AI & blockchain

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