AI Policy and Investment – The US Approach

The US has seen a series of major developments in AI policy and investment following President Donald Trump’s inauguration on 20 January 2025 (see here). Recent initiatives focus on private-sector investment, deregulation and AI-driven infrastructure projects.

This article explores the US AI landscape and its implications for corporate investment, M&A activity and business strategy.

AI Investment and Infrastructure in the US – Private-Sector Investment in AI Development

A $500 billion private-sector AI infrastructure initiative has been announced, involving OpenAI, SoftBank and Oracle (see here).

• The Stargate project is set to build 20 AI data centres, each spanning 500,000 square feet.
• The initiative is expected to generate over 100,000 jobs, with a focus on maintaining US competitiveness in AI.

Regulatory Adjustments and Market Liberalisation

• The revocation of Biden-era AI executive orders is part of a broader effort to reduce compliance requirements for AI businesses.
• There is an increased emphasis on soft law frameworks, which allow companies to operate with fewer regulatory constraints.

Export Controls and Geopolitical Competition

• AI-related export controls have been strengthened, with restrictions on advanced AI technologies to certain jurisdictions.
• Investment in AI applications for defence and national security is increasing, reflecting broader geopolitical considerations.

AI Market Expansion and Innovation

• Federal policies are being adjusted to support autonomous vehicle development and AI-driven logistics.
• There are discussions on harmonising state AI regulations to simplify compliance requirements across the US.

Implications for Business and Investment – Investment and M&A Considerations

• The stated aim of deregulation is to increase AI-related M&A activity, creating opportunities for consolidation and investment.
• The AI infrastructure expansion could attract new entrants and startups seeking to leverage advanced data centre capabilities.

Risk and Compliance Considerations

• Businesses engaging in AI development may need to assess export control risks and geopolitical considerations.
• The growth of military AI applications may require businesses to evaluate ethical and reputational factors.

Innovation and AI Startups

Recent AI developments are expected to accelerate innovation across multiple sectors.

• The Stargate project provides infrastructure for AI businesses looking to scale.
• AI market expansion efforts include deregulation in high-growth areas such as autonomous systems and logistics.
• The emergence of AI models such as DeepSeek highlights ongoing global competition in AI development (see here).

DeepSeek’s cost-efficient AI model has raised questions about the assumption that AI progress is solely dependent on high-performance computing power. The model’s rapid adoption has influenced market sentiment, contributing to shifts in tech investment strategies.

Conclusion

The US AI strategy reflects an approach focussed on private-sector investment and regulatory flexibility. Businesses operating in AI-related sectors will need to assess how these developments impact market opportunities, investment strategies and compliance considerations.

How We Can Help

At Burges Salmon, we understand the challenges and opportunities that AI innovation brings to businesses globally. Our expertise spans multiple practice areas, including corporate law, M&A, cross-border transactions and support for early-stage companies. Here’s how we can assist you:

• Regulatory and Policy Expertise: Our deep knowledge of regulatory frameworks allows us to help clients navigate complex compliance requirements, manage export controls and address data privacy challenges.
• M&A and Cross-Border Deals: We specialise in advising clients on M&A opportunities, structuring transactions, conducting due diligence and navigating regulatory approvals in cross-border contexts.
• Support for Early-Stage Companies: From securing funding to scaling operations, we work closely with startups to leverage public-private partnerships, regulatory sandboxes and investment incentives.
• Risk Management: Our team helps businesses anticipate and mitigate risks associated with geopolitical developments, ethical considerations and governance requirements tied to AI deployment.
• Global Reach: Through our vast network of preferred firms, we are equipped to co-ordinate international legal advice for our clients, ensuring seamless service and local expertise that stretches across the globe.

With offices in Bristol, Edinburgh and London we are ideally positioned to serve clients across the UK and internationally. Our commitment to providing practical, commercially focussed advice ensures that we deliver tailored solutions that meet your unique needs.

If you would like to discuss AI and what these developments mean for your business, please speak to your usual contact at Burges Salmon,Shaaf Alam, Tom Whittaker or Alex Lloyd.