TRUMP & TECH BUSINESS
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Trump Announces $500 Billion AI Infrastructure Investment in US |
Three top tech firms have announced that they will create a new company, called Stargate, to grow artificial intelligence infrastructure in the U.S. OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son and Oracle Chairman Larry Ellison appeared at the White House Tuesday afternoon alongside President Trump to announce the company, which Trump called the "largest AI infrastructure project in history." The companies will invest $100 billion in the project to start, with plans to pour up to $500 billion into Stargate in the coming years. The project is expected to create 100,000 US jobs, Trump said.
AI leaders have for months been sounding the alarm that more data centers - as well as the chips and electricity and water resources to run them - are needed to power their AI ambitions in the coming years. Oracle is among the biggest US data center operators. And SoftBank has the kind of deep pockets needed to fund the expansion of AI infrastructure, which is expected to cost billions of dollars.
In a policy white paper published last week, OpenAI said investment in US AI infrastructure can ensure that US AI tools win out over Chinese technology, as well as creating new US jobs and economic opportunities, and urged the US government to create "foundational strategy to ensure that investment in infrastructure benefits the most people possible and maximizes access to AI." The brief estimated that there are "$175 billion sitting in global funds awaiting investment in AI projects." Oracle said in a statement that the Stargate project "will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies."
SoftBank will have financial responsibility for Stargate and OpenAI will have operational responsibility. A fourth partner, MGX, is also contributing funding. (https://www.cnn.com/2025/01/21/tech/openai-oracle-softbank-trump-ai-investment/index.html)
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Trump Rescinds Biden Executive Order in AI Regulatory Overhaul |
President Trump kept his campaign promise to repeal former President Biden's AI-focused executive order, issued in October 2023. The executive order required advanced AI developers to submit safety results to the federal government. The provisions also called for standards-setting, procurement process changes and the creation of the U.S. AI Safety Institute but stopped short of imposing consequences for non-compliant businesses.
Trump appointed Silicon Valley investor and entrepreneur David Sacks as White House AI and Crypto Czar, tasked with guiding the administration's policy. Analysts suggested the pick proved to be another sign of easing restraints on AI innovation. U.S. business leaders could potentially encounter AI oversight as part of efforts by antitrust and intellectual property protection watchdogs. The FTC is now led by Andrew Ferguson, who was announced in December as President Trump's pick and previously served as a commissioner for the agency. (https://www.ciodive.com/news/Trump-AI-executive-order-repeal-Biden-era-regulatory-overhaul/737883/)
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TSMC is Confident its CHIPS Act Funding Will Continue Under Trump |
President Trump has accused Taiwan of "stealing" his country's chip industry. But Taiwan's biggest chip company is confident the administration will continue funding its projects in the U.S. Taiwan Semiconductor Manufacturing Co has been promised $6.6 billion under the Biden administration's CHIPS and Science ACT to help build three cutting-edge chip fabrication plants in Arizona as part of U.S. efforts to onshore chip manufacturing. Speaking to CNBC's Emily Tan, TSMC CFO Wendell Huang said the funding was expected to continue to roll in gradually under Trump as the fabrication plants pass construction and production milestones. Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year, Huang said. He added that the construction of two plants in Arizona was on track, with the second expected to be operational in 2028. (https://www.cnbc.com/2025/01/19/tsmc-confident-in-continued-chips-act-funding-under-trump-says-cfo.html)
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How to Handle Your H-1B Visa Skilled Workers Under Second Trump Term |
Companies using the H-1B visa program to hire skilled workers from abroad should prepare for an application process that takes longer and costs more, along with site visits and heavier regulation of the program, according to an attorney specializing in employer-based immigration. Having campaigned on an immigration-heavy platform, pledging significant changes, then-president-elect Trump has discussed deporting millions of undocumented people. However, legal immigration is also expected to be affected and many employers are bracing for potential disruptions in the H-1B program, which offers 85,000 visas annually to highly educated workers with specialized skills.
A Biden administration modernization of the H-1B rules, took effect on January 17. The changes were designed to make the 35-year-old worker program more flexible for employers, and harder to change dramatically by administration. Biden's modernization also gave the executive branch more oversight tools to monitor H-1B compliance. (https://www.legaldive.com/news/how-to-handle-your-h-1b-visa-skilled-workers-under-next-trump-term/737175/
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CalMatters is Tracking California's Lawsuits Against New Trump Administration |
California's Democratic leaders have set aside tens of millions of dollars to challenge President Trump's executive orders and policies. Meanwhile, President Trump signed a flurry of executive orders moments after being inaugurated president, and many of them could directly affect California. These orders include revoking licenses for offshore wind which may shut down proposals off the coast of Humboldt County and Morro Bay, a more aggressive targeting of undocumented immigrants living throughout the state, and a strong embrace of fossil fuels which could impact air quality standards, the state's electric vehicle mandate and funding for green initiatives. California officials used the courts to defend itself during Trump's first administration, suing the federal government at least 123 times and winning two out of every three cases. The state's Democratic leaders began preparing for new cases months before Trump took office by writing briefs and setting aside tens of millions of dollars for expected court fights. Now, as Trump's second term begins, the state is already filing lawsuits. CalMatters is tracking these cases as they are filed: https://calmatters.org/politics/2025/01/california-trump-lawsuits/
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BIDEN ADMINISTRATION'S FINAL DAYS & TECH BUSINESS
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Biden White House Released Rules on AI, Chip Exports |
The Biden White House recently unveiled new guardrails for AI development and advanced computing chip exports, just days before the end of President Biden's term. The rules create a tiered system for access to high-end processors and computing power, ultimately restricting AI chip and model weight access for countries not included in a list of 18 key allies. The new rules will also limit offshoring data center operations for AI development. Organizations have a 120-day period to provide commentary on the export and model weight restrictions, giving the Trump administration control over changes moving forward. Analysts expect the Trump administration to govern with a light regulatory touch. (https://www.ciodive.com/news/White-House-Biden-Administration-AI-model-weights-chip-export-rules/737215/)
(https://www.whitehouse.gov/briefing-room/statements-releases/2025/01/13/fact-sheet-ensuring-u-s-security-and-economic-strength-in-the-age-of-artificial-intelligence/)
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MEANWHILE, Biden's AI Diffusion Rule Met with Heavy Backlash |
Experts have criticized then-President Biden's recent Interim Final Rule on Artificial Intelligence Diffusion, saying that the rule could hamper U.S. competitiveness. The rule builds on existing semiconductor and AI export controls by adding controls on advanced computing chips and software, including closed AI model weights, or the training that shapes how AI systems think and respond to queries. It also creates new licensing expectations for companies. The rule aims to "keep advanced AI models out of the hands of malicious actors," according to the Department of Commerce's Bureau of Industry and Security. Nvidia lambasted the AI diffusion rule. Ned Finkle, Nvidia's vice president of government affairs, said while "cloaked in the guise of an 'anti-China' measure, these rules would do nothing to enhance U.S. security." Finkle's blog post described the AI diffusion rule as a "sweeping overreach" that imposes bureaucratic control on not just semiconductors, but also computers, systems, and software designed and sold globally. (https://www.techtarget.com/searchcio/news/366618034/Bidens-AI-diffusion-rule-met-with-heavy-backlash)
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Biden Administration Rolled Out Wide-Reaching Cybersecurity Executive Order |
The Biden White House rolled out a highly anticipated executive order on January 16 to combat a rising level of sophisticated attacks targeting U.S. government agencies, critical infrastructure providers and high-profile individuals by state-linked threat groups and other malign actors. The executive order gives the U.S. more authority to level sanctions against malicious actors that have disrupted hospitals and other critical providers. Federal authorities also plan to leverage the government's $100 billion in annual IT spending to make sure technology companies develop more secure software. (https://www.cybersecuritydive.com/news/biden-cybersecurity-executive-order/737527/)
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WORKFORCE & BUSINESS TRENDS
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These Tech Skills Drove Biggest Salary Increases Over Past Year |
The average technology professional now earns $112,521 a year across all disciplines, reflecting a 1.2% year-on-year increase, according to Dice's latest tech salaries report, based on the responses of 2,835 tech professionals conducted in the fall of 2024. IT executives and managers lead the pack by a wide margin, earning almost $170,000 annually on average. Developers tend to earn close to $130,000 annually.
Average annual earnings by job title:
1) IT management (CEO, CIO, CTO, VP, and director): $168,345
2) Software developer: $128,386
3) Project manager: $121,237
4) Other IT: $114,423
5) Business analyst/intelligence analyst: $102,500
6) QA engineer/tester: $96,917
7) Systems administrator: $93,783
8) Data analyst: $83,990
9) IT support: $67,746
10) Helpdesk technician/computer or desktop support specialist: $57,234
Skills that had the largest average salary increases over the past year:
- Natural language processing: $131,621 (+21%)
- AWS CodeWhisperer: $117,821 (+16%)
- Amazon Redshift: $134,103 (+15%)
- BigQuery: $120,434 (+15%)
- COBOL: $130,243 (+15%)
- Ruby: $136,920 (+13%)
- AI: $130,277 (+12%)
- Blockchain: $113,143 (+12%)
- Oracle eBusiness: $121,227 (+12%)
- Application delivery: $123,336 (+11%) (https://www.zdnet.com/home-and-office/work-life/these-tech-skills-drove-the-biggest-salary-increases-over-the-past-year/)
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Tech Talent Market Wraps 2024 on a High Note |
Despite setbacks throughout much of last year, 2024 ended on a high note as employers across the economy added 7,000 net new technology positions, according to a review of U.S. Bureau of Labor Statistics published recently by CompTIA. Software engineering, cybersecurity, and data science are among the key drivers of growth. According to CompTIA, two-thirds of organizations expect to train existing workers to fill cybersecurity, software, data, and other IT skill gaps, an increase from 59% in 2024. (https://www.ciodive.com/news/jobs-report-december-IT-CompTIA/737084/)
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Cyber Disruptions Remain Top Business Risk Concern in US, Globally |
Cybersecurity risk, including ransomware, data breaches and IT disruptions, remained the top business concern in the U.S. and worldwide over the past year, according to the Allianz Risk Barometer released recently. Cyber incidents topped the global list of business risks for the fourth consecutive year, representing more than 1 in 3 of those surveyed in the report. The margin between the top business risks was the widest ever, with a 7% gap between cyber and business interruption, the second largest global concern. The report is based on a survey of almost 4,000 risk management experts in 106 countries and territories. The executive respondents include risk managers, brokers, CEOs and insurance experts. (https://www.ciodive.com/news/cyber-business-risk-us-globally/737734/)
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LOOKING AHEAD: TECH TRENDS
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CES 2025 Wrap-Up: "The Future Of Tech Is Brighter, Smarter And Picks Up After Itself" |
This year's CES 2025 highlighted particularly significant developments in display technology, AI-powered computing and home automation, reports Forbes, which shares some of the most influential products and key trends from this year's show. In summary they include:
- The display segment saw significant advances in panel technology and processing capabilities.
- The computing segment demonstrated how AI is continuing its integration across different device categories.
- Several manufacturers pushed the boundaries of traditional device design (e.g., a rollable screen).
- Significant advances in both home automation and health monitoring technology, with devices becoming more capable of complex physical interactions and health analysis (such as a smart mirror concept that integrates health monitoring; OTC glucose monitors; and wearable smart ring with integrated ECG capability, AFib detection and digital sizing technology). (https://www.forbes.com/sites/esatdedezade/2025/01/10/ces-2025-wrap-up-the-future-of-tech-is-brighter-smarter-and-picks-up-after-itself/)
ALSO, ZDNET teamed up with the rest of CNET Group (CNET, PCMag, Mashable, and Lifehacker) and the Consumer Technology Association (CTA) to name the official Best of CES 2025 award winners in 12 categories. (https://www.cnet.com/tech/these-are-the-official-2025-best-of-ces-winners-awarded-by-cnet-group/)
AND, CTA has published CES.tech for all of its video on-demand from the event.
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Microsoft Plans to Pour $80B into Cloud Data Centers |
Microsoft expects to spend roughly $80 billion on AI-enabled data centers to train large language models and deploy AI and cloud-based applications during its current fiscal year, which runs through June 30, the company's Vice Chair and President Brad Smith said recently. More than half of the investments will be in the U.S. AI workloads triggered cloud capacity constraints last year, ratcheting up an ongoing data center building boom. AWS and Google Cloud, the two other global cloud giants, are also pouring billions into AI infrastructure, driving massive growth in the data center market. (https://www.ciodive.com/news/microsoft-ai-cloud-datacenter-investments-surge/736574/)
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