AI in January (2025)

Written by Emily Wolfteich
Senior Industry Analyst

President Donald Trump rescinded the Biden-era Executive Order on Safe, Secure, and Trustworthy Development of AI, issued a new Executive Order.

Trump rescinded the Biden-era Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (Executive Order 14110), replacing it with a new Executive Order, Removing Barriers to American Leadership in Artificial Intelligence. This EO strips away many of the foundational guidelines that were intended to ensure responsible AI development across federal agencies.

Biden’s EO, issued in October 2023, sought to place the U.S. at the forefront of ethical AI development by requiring AI safety testing, mandating federal agencies to designate Chief AI Officers (CAIOs), and emphasizing civil rights protections in automated systems. In contrast, the new administration’s EO promotes “deregulation and innovation” and removes many of the oversight and safety requirements, favoring a market-driven approach to AI leadership.

Why does it matter?

The revocation creates a regulatory vacuum. While the Biden administration had begun implementing safeguards across federal agencies, Trump’s directive halts this momentum without replacing federal guidance leaving some directives – including the establishment of Chief AI Officers (CAIO) – in confusion. The move signals a broader philosophical shift from precautionary governance toward a hands-off approach that prioritizes economic competitiveness and private sector interests.

Trump, tech leaders OpenAI, Softbank, and Oracle announce the Stargate Project.

Trump joined leaders from OpenAI, Oracle, and Japan’s SoftBank to announce the Stargate Project—a massive new AI infrastructure initiative expected to create one of the world’s largest supercomputing clusters. This ambitious undertaking, based in the U.S., aims to rival global competition, particularly from China, in the AI arms race. The project plans to build a $100 billion AI data center in partnership with G42, a UAE-based AI firm. The system is reportedly designed to train frontier AI models that surpass GPT-4 in scale and performance.

Why does it matter?

The president’s involvement in the project—despite it being privately led—suggests a fusion of public image with private tech power, particularly following the prominence of tech CEOs at Trump’s inauguration. It underscores how AI development is becoming a strategic national and political asset. The alliance also highlights a shift that favors rapid AI expansion over regulatory caution.

Chinese lab DeepSeek releases an AI assistant that outperforms Google, Anthropic, Meta and OpenAI AI models.

A small lab in China’s release of their AI model caused a $1 trillion drop in tech stocks. Chinese AI lab DeepSeek released its DeepSeek V3 assistant, claiming superior performance to top-tier models from Google, Meta, Anthropic, and OpenAI. The model reportedly outperformed GPT-4, Claude, and Gemini in multiple benchmarks, including MMLU (massive multitask language understanding) and GSM8K (grade school math), drawing immediate attention from global tech watchers.

Why does it matter?

DeepSeek’s claims that it developed the model in just six months and for approximately $6 million—without access to advanced U.S. semiconductors—have stunned industry observers. If validated, this would represent a tectonic shift in the AI landscape, proving that elite-level models can be developed rapidly and cost-effectively even under export sanctions.

The financial markets responded swiftly: following the announcement, major U.S. tech firms lost over $1 trillion in market capitalization amid fears of lost AI supremacy. DeepSeek is also significantly cheaper to use than its American counterparts; nearly 30 times cheaper than OpenAI for the same number of tokens

OpenAI released ChatGPT Gov.

A customized version of its flagship large language model tailored specifically for U.S. government use, ChatGPT Gov says it offers government agencies access to advanced generative AI tools within FedRAMP-authorized environments, ensuring sensitive data remains secure.

Why does it matter?

This rollout signals a major turning point in AI adoption by public institutions. Agencies across defense, healthcare, and administration are expected to use the platform for automating internal workflows, summarizing policy documents, answering technical queries, and even drafting regulations. By offering ChatGPT under a government-friendly compliance framework, OpenAI is working to position itself as the default interface for AI in governance—shaping how decisions are made and documents are produced within the public sector. The move also raises key questions about dependency on private firms for critical infrastructure, and how procurement dynamics might favor a handful of dominant AI providers.

The National Artificial Intelligence Advisory Committee released its 10 priorities for the new administration.

The National Artificial Intelligence Advisory Committee (NAIAC) has released a new list of 10 key priorities aimed at guiding AI policy under any administration. The NAIAC—established under the National AI Initiative Act—serves as the primary federal advisory body on artificial intelligence.

Establishing robust AI governance and oversight mechanisms
Developing international standards for AI safety and alignment
Expanding federal investment in AI research and STEM education
Addressing bias and civil rights impacts of AI systems
Advancing privacy-preserving AI technologies
Enhancing AI infrastructure accessibility for small innovators
Promoting workforce training and equitable labor transitions
Supporting open-source AI development
Encouraging transparency in high-risk AI deployments
Clarifying ethical boundaries for AI in national security and law enforcement

Why does it matter?

NAIAC’s recommendations highlight expert consensus on long-term needs for safety, transparency, and equity. These priorities are non-binding but influential, especially for legislators, agencies, and international partners crafting complementary policy frameworks.

The contrast between the advisory committee’s caution and the administration’s deregulatory zeal could shape tensions in future policy debates, particularly around AI use in defense, surveillance, and civil society.

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