Revealed: Trump Considered Splitting Nvidia, Signs Most Aggressive AI Action Plan, Industry Faces New Regulations}
Trump announced a bold AI action plan, considering splitting Nvidia, and aims to accelerate US AI development with minimal regulation, challenging global norms and industry giants.
Trump: Huang Renxun (Nvidia CEO) controls 100% of AI, so perhaps we shouldn’t interfere with this industry.
US AI development may soon accelerate at an unprecedented pace.
On Wednesday, U.S. President Trump detailed a new "AI Action Plan", outlining policies to promote the growth of the American AI industry.
- US AI Action Plan webpage: https://www.ai.gov/action-plan
- Document download: https://www.whitehouse.gov/wp-content/uploads/2025/07/Americas-AI-Action-Plan.pdf
This 28-page document outlines over 90 policy actions for the rapid development of AI, with officials stating these measures could be implemented as early as next year.
Trump announced plans to accelerate AI development in the US, opening the door for companies to develop the technology with minimal regulation and safeguards, but also emphasized the need to eliminate partisan bias in AI.
To this end, Trump signed three executive orders and outlined an "AI Action Plan" that includes measures to eliminate bureaucratic hurdles and facilitate AI infrastructure development for businesses.
His orders include banning federal procurement of AI tools with perceived ideological bias, speeding up approval processes for large AI infrastructure projects, and promoting US AI exports globally.
Plan overview
"The US is the initiator of the AI race," Trump said in a speech on Wednesday evening, "and I declare that the US will win this race."
In 2023, former President Biden signed an executive order to establish safety standards for federal AI use, but Trump revoked it on his first day in office this year.
A few days later, Trump signed another executive order to accelerate AI development, eliminate ideological bias, and began drafting today’s AI Action Plan, seeking public input.
The Trump administration’s AI policy adopts core arguments from the tech industry: to ensure US global leadership, AI should develop with minimal regulation. This stance sharply contrasts with the EU and other economies that are legislating AI standards.
Additionally, the policy aims to reshape how AI tools present information, responding to conservative criticisms of liberal bias in current models. However, changing the inherent bias in AI models trained on vast internet data remains a significant challenge.
"The AI Action Plan is another major move to promote AI development," said industry insiders. Before this, several large-scale investments led by tech companies highlighted the public-private partnership strategy to boost US AI industry.
For example, on July 15, Trump announced a plan exceeding $90 billion, involving companies from tech, energy, and finance sectors, aiming to make Pennsylvania a new AI hub.
Earlier, during his second term, Trump launched the "Stargate" AI infrastructure project, estimated to cost up to $500 billion, involving industry leaders like Sam Altman of OpenAI, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison, with significant influence.
He also indicated plans to lift the export restrictions on Nvidia’s AI chips introduced during Biden’s administration. Recently, Nvidia was allowed to resume sales of its H20 AI chips to China.
Not long ago, Trump even considered splitting Nvidia. During the AI Action Plan launch, he recalled a conversation with advisors, who told him splitting Nvidia was very difficult.
I asked: "Why? What’s their market share?"
They replied: "President, they have 100% share."
"Who are they? What’s their name?"
"His name is Huang Renxun, and he is Nvidia."
I said: "What is Nvidia? I’ve never heard of it."
He said: "You definitely don’t want to know, sir."
Trump admitted he abandoned the idea of splitting Nvidia after realizing how difficult it would be. "I thought we could intervene, split them a little, and give some competition... but I found it’s not easy in this industry. I said, ‘Let’s gather the best talents, work together for years, and see if we can compete with Nvidia.’ He said, ‘No, if Huang Renxun waits now, it will take at least ten years to catch up.’ So I said, ‘Alright, let’s move on.’"
"Later I met Huang Renxun, and now I understand why," Trump added.
Huang Renxun successfully persuaded Trump to allow Nvidia to sell H20 chips to China, preserving a crucial revenue stream. Previously, the US had restricted Nvidia’s H20 chips over concerns they might aid China’s AI development. The US Commerce Department claimed these chips were only the “fourth-best” AI chips, meant to keep Chinese developers dependent on American technology stacks.
Regardless of the reasons behind policy changes, the AI plan’s implementation benefits Nvidia and many Silicon Valley tech companies. Nvidia had already become the first company valued at $4 trillion before this decision. Earlier, during Biden’s term, the US Department of Justice investigated Nvidia for antitrust concerns.
However, Trump’s relaxed stance may encourage companies to pursue more aggressive AI strategies.