The Trump administration has revealed a sweeping new AI strategy to cement US dominance in the global AI race, particularly against China.

The 25-page 'America's AI Action Plan' proposes 90 policy initiatives, including building new data centres nationwide, easing regulations, and expanding exports of AI tools to international allies.

White House officials stated the plan will boost AI development by scrapping federal rules seen as restrictive and speeding up construction permits for data infrastructure.

A key element involves monitoring Chinese AI models for alignment with Communist Party narratives, while promoting 'ideologically neutral' systems within the US. Critics argue the approach undermines efforts to reduce bias and favours politically motivated AI regulation.

The action plan also supports increased access to federal land for AI-related construction and seeks to reverse key environmental protections. Analysts have raised concerns over energy consumption and rising emissions linked to AI data centres.

While the White House claims AI will complement jobs rather than replace them, recent mass layoffs at Indeed and Salesforce suggest otherwise.

Despite the controversy, the announcement drew optimism from investors. AI stocks saw mixed trading, with NVIDIA, Palantir and Oracle gaining, while Alphabet slipped slightly. Analysts described the move as a 'watershed moment' for US tech, signalling an aggressive stance in the global AI arms race.