Trump Touts AI as Bigger than Internet, Pushes Deregulation Amid Datacentre Backlash

US President Donald Trump has emphasized the potential of artificial intelligence (AI) to surpass even the internet in importance, while also highlighting the need for deregulation and expanded datacentre infrastructure to compete with China.

Speaking at a White House event with cryptocurrency industry officials and financial regulators on August 19, Trump described AI as a core US strategic industry. 'Regulate, but it has to be in a way where the companies can continue to keep the edge,' he said. 'Regulation can't suffocate a very important industry.'

Trump pointed out that China is the United States' closest competitor in the AI space and mentioned the possibility of discussing AI during Chinese President Xi Jinping's planned visit on September 24.

The US government has been accelerating AI infrastructure projects, with Trump urging local governments to actively seek to attract AI factories and datacentres. He stressed that the job and tax revenue effects of such developments are 'very large.'

However, the growth of datacentres has also led to rising backlash over issues including higher electricity bills, water use, and environmental impact. At least 37 people have been arrested during protests against datacentres so far this year, and legislatures in 15 states have reviewed measures to halt or pause datacentre development.