White House: "Winning the AI Race is non-negotiable”

Good morning. Hope your coffee’s hot and your portfolio hotter.

🤖 Major indexes keep riding high as the White House casts AI as the next arms race, but is average business ready to adapt?

🏗 xAI eyes a new funding round just as Stargate scales back ambitions, and SpaceX tries to play the Swiss card.

And we’ve got a slew of other stories you can read about after that.

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This is our tech edition for the week. Next Monday will be policy, and Wednesday will be finance.

This week:

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AI-driven optimism propelled tech markets to new heights this week. Major indexes notched record highs as heavyweight AI chipmaker $NVDA ( ▼ 3.5% ) Nvidia jumped ~2%, helping fuel gains in the S&P 500 and Nasdaq.

Top industry analysts are calling this era a “fourth industrial revolution” powered by AI, but only ~4% of companies have spent on AI so far—still, industry talking heads say rapid adoption is just around the corner.

Even Washington is doubling down on the AI race: President Donald Trump unveiled a $70 billion national AI Action Plan aimed at fast-tracking AI infrastructure and chip exports to ensure the U.S. “wins the AI race” against global rivals.

So the Magnificent 7 just keep winning, as it gets harder and harder to claim AI is just a bubble.

For a freaky look at what could be in our future if AI continues to grow unchecked, take a look at the AI 2027 video from AI In Context. Potential consequences include but are not limited to AI-controlled government and military affairs, universal basic income, and human extinction.

Several high-profile projects (and Elon Musk) made headlines this week, riding the highs of the current megaproject trend.

Elon Musk’s xAI is plotting to raise another $12 billion in debt financing to lease tens of thousands more Nvidia GPUs for its next supercluster, just weeks after securing $10 billion in its last round .

Industry leaders are already positioning for this rush. $AMD ( ▼ 5.45% ) CEO Lisa Su warned that global demand for AI chips could swell to over $500 billion in the coming years, driven by infrastructure needs from players like xAI and OpenAI.

Meanwhile, the once‑starry-eyed $500 billion “Stargate” partnership between SoftBank $SFTBY ( ▼ 7.28% ) and OpenAI has sharply scaled back its ambitions, shifting from multiple hyperscale builds to planning a single, smaller US data center by year‑end . Elon Musk himself fanned the skepticism, dismissing Stargate’s feasibility on social media.

After a vocal week on X, SpaceX cautioned shareholders that Musk’s renewed political pursuits may pose a “risk factor,” warning that a potential return to politics could divert his attention from the rocket maker’s ambitious launch cadence and government‑contract roadmap.

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