President Biden Signs Executive Order to Advance U.S. AI Infrastructure

What Happened?

President Joe Biden signed an executive order on Tuesday to address the growing need for the U.S. to be fully equipped to support artificial intelligence (AI) advancement.

The order calls for the U.S. Defense (DOD) and Energy departments (DOE) to lease federal sites where the private sector can scale and build frontier AI infrastructure to address enormous power needs in a short time frame.

These measures include the advancement of more clean energy, economic competitiveness, national security, and AI safety.

In a statement, Biden said, ‘We will not let America be out-built when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water.’

After the DOD and DOE select the sites, competitive solicitations for proposals will be held for building, owning, and operating large-scale AI infrastructure at private expense.

Biden added that the efforts will also help position America to lead the world in clean energy deployment from competition abroad and the age of AI overall.

Why it Matters

The announcement comes as the Biden administration has reportedly spent more than $30 billion to subsidize U.S. chip production.

According to the order, companies would now have to tap federal land for AI data centers to purchase an 'appropriate share' of American-made semiconductors.

White House technology adviser Tarun Chhabra told reporters by around 2028 leading AI developers will seek to operate data centers with as much as five gigawatts of capacity for training AI models.

Chhabra added that building these advanced data centers in the U.S. will prevent 'adversaries from accessing these powerful systems to the detriment of our military and our national security.'

The move comes after the U.S. Commerce Department announced Monday it would restrict AI chip and technology exports to keep advanced computing power in the U.S.

'In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses, such as mass surveillance,' the department said in a statement.

Chip-maker Nvidia (NVDA) was reportedly among companies who said these measures would not 'mitigate any threat' but instead 'weaken America's global competitiveness.'

J. Alan Roberson of the Association of State Drinking Water Administrators told the Associated Press that the executive order doesn't address how states with multiple AI data centers will manage the vast amounts of water consumption for cooling purposes.

'Across the country, everyone is trying to get a better idea of the impact of data centers on water use now and in the future,' Roberson told reporters.

How it Affects You

Some experts reportedly think since the framework includes a 120-day comment period, many of these measures may not survive once President-elect Donald Trump enters office.

'There's going to be a big play for innovation and growth in the U.S. and a drawback from the approach to AI regulation,' Jonathan Kewley of the tech group Clifford Chance told BBC News.

It will be important to see how the U.S. balances its perceived advances over key rivals such as China while still advancing in technical areas that won't affect global allies.