Trump's Tariffs and the Future of AI
SAN FRANCISCO — President Donald Trump has pledged to make the United States the ‘world capital’ of artificial intelligence, but his aggressive trade tariffs threaten to undermine Silicon Valley’s work on this crucial technology and weaken its competition with China.
Trump’s trade levies are expected to increase the costs associated with building and operating the data centers needed for AI development, impacting major players like OpenAI, Google, and Microsoft.
OpenAI CEO Sam Altman expressed concerns in a recent interview, stating, ‘We’re working around-the-clock on this.’ The focus is on how the tariffs will influence operational costs for their AI models.
While Trump and tech industry leaders view China as the primary competitor in AI, the president’s tariffs, which have reached an astounding 145 percent, may inadvertently empower China in the global AI arena. Josh Levi, president of the Data Center Coalition, said, ‘We strongly encourage efforts to provide certainty and evaluate impacts on critical data center equipment at this pivotal moment in the AI race.’ He also emphasized the industry’s role in U.S. global competitiveness and national security.
Notably, while software is exempt from these tariffs, critical computing equipment, particularly expensive graphic processing units (GPUs)—essential for AI development—are not. Additionally, construction materials and equipment necessary for building data centers will also be subject to new import taxes.
Altman pointed out, ‘It sounds good that chips are exempted, but there are so many other parts to the cost of a data center.’ This uncertainty has sent shockwaves through an industry that prides itself on innovation and forward-thinking.
‘The overarching observation is one of uncertainty and confusion,’ commented Jay Biggins, an executive managing director at BLS and Co. ‘There is a feeling of inability to plan.’
As graduation season approaches, students at the University of North Georgia (UNG) are raising their voices against an unexpected twist in their commencement plans: the use of artificial intelligence to announce graduates’ names. A growing petition, spearheaded by students like Emily Schwarzmann, reflects a desire to preserve the human connection they feel is essential to this milestone moment.
According to reports, UNG plans to use AI-powered technology to read graduates’ names during ceremonies. While the university defends the decision, many students argue it feels impersonal and diminishes the significance of their achievements.
‘I'm looking forward to graduation, but it feels demeaning to the hard work that we put in,’ Schwarzmann stated, underscoring the desire for a personal touch during the ceremony.
This situation reflects broader discussions in higher education about the role of technology versus human interaction, particularly during significant traditions like graduation.
While UNG maintains the technology’s accuracy and inclusivity, critics argue that AI lacks the warmth and authenticity of a familiar faculty member announcing names, which could enhance the graduates’ experience.
‘When regulations change overnight, it’s difficult to plan,’ remarked Andrew Ng, a former head of Google’s AI lab, who noted that many U.S. companies might consider building data centers abroad due to the uncertainty and rising costs caused by tariffs.
Ultimately, the effects of Trump’s tariff policy on the tech industry and higher education institutions will unfold over time, revealing the balance between innovation and tradition.
As these students push for recognition, the conversation surrounding technology’s role in vital cultural moments remains ongoing.
Ellen Nakashima contributed to this report.
- 0 Comments
- Trade Tariffs
- U.S. Competitiveness