Billion-Dollar Investments, New EU Regulation and Corporate AI Results
1 August 2025
July, as usual, is a quiet month. But it's during summer that new initiatives are being prepared that are set to shake up the market in early fall. We cover the main events in the world of artificial intelligence over the past month.
Trump's New Plans
U.S. President Trump announced the "Winning the AI Race" initiative, a 20‑page action plan focused on accelerating U.S. AI innovation, boosting infrastructure projects like data centers and chip fabs, and expanding AI exports to allied nations. The plan mandates that federal agencies avoid procuring AI systems with ideological bias and streamlines permitting while loosening environmental regulations for AI infrastructure development.
The AI Action Plan has been welcomed by industry leaders—including OpenAI, Meta, and Microsoft—who see regulatory relaxation and trade expansion as critical to competing with China. Critics, however, warn that sidelining AI safety, environmental, and social equity concerns may raise long‑term risks and invite political overreach.
Fake!
Reports reveal that over $1 billion worth of NVIDIA’s B200 AI chips have been smuggled into China despite U.S. export controls, feeding a thriving black market for banned hardware. NVIDIA cautions that unauthorized products lack official support and may hamper data center efficiency and reliability.
More money. And justice
Morgan Stanley’s July 2025 survey shows strong returns from AI investment in financial services, retail, and commercial real estate, with notable adoption jumps in insurance (48→71%) and consumer goods (20→44%). The analysis highlights that companies integrating AI are outperforming peers in both profitability and stock performance.
Alphabet (Google) raised its 2025 capital expenditure forecast from $75 billion to $85 billion, largely to build new servers, data centers, and networking gear supporting AI growth. Analysts suggest the step was prompted by favorable tax policies and could prompt similar moves from Amazon and Meta.
At the AI for Good Global Summit in Geneva, UN agencies, including WHO and WIPO, explored how AI can enhance healthcare and traditional medicine while addressing ethical deployment globally. Sessions emphasized equitable, sustainable AI applications to reduce health inequalities and support global wellness goals.