On Wednesday, the White House released "Winning the Race: America's AI Action Plan," a 25-page document that outlines the Trump administration's strategy to "maintain unquestioned and unchallenged global technological dominance" in AI through deregulation, infrastructure investment, and international partnerships. But critics are already taking aim at the plan, saying it's doing Big Tech a big favor.
Assistant to the President for Science and Technology Michael Kratsios and Special Advisor for AI and Crypto David Sacks crafted the plan, which frames AI development as a race the US must win against global competitors, particularly China.
The document describes AI as the catalyst for "an industrial revolution, an information revolution, and a renaissance—all at once." It calls for removing regulatory barriers that the administration says hamper private sector innovation. The plan explicitly reverses several Biden-era policies, including Executive Order 14110 on AI model safety measures, which President Trump rescinded on his first day in office during his second term.
Chinese firms have begun rushing to order Nvidia's H20 AI chips as the company plans to resume sales to mainland China, Reuters reports. The chip giant expects to receive US government licenses soon so that it can restart shipments of the restricted processors just days after CEO Jensen Huang met with President Donald Trump, potentially generating $15 billion to $20 billion in additional revenue this year.
Nvidia said in a statement that it is filing applications with the US government to resume H20 sales and that "the US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon."
Since the launch of ChatGPT in 2022, Nvidia's financial trajectory has been linked to the demand for specialized hardware capable of executing AI models with maximum efficiency. Nvidia designed its data center GPU to perform the massive parallel computations required by neural networks, processing countless matrix operations simultaneously.
On Wednesday, Nvidia became the first company in history to reach $4 trillion market valuation as shares rose more than 2 percent, reports CNBC. The GPU maker's stock has climbed 22 percent since the start of 2025, continuing a trend driven by demand for AI hardware following ChatGPT's late 2022 launch.
The milestone marks the highest market cap ever recorded for a publicly traded company, surpassing Apple's previous record of $3.8 trillion set in December. Nvidia first crossed $2 trillion in February 2024 and reached $3 trillion just four months later in June. The $4 trillion valuation represents a market capitalization larger than the GDP of most countries.
As we explained in 2023, Nvidia's continued success has been intimately tied to growth in demand for hardware that runs AI models as capably and efficiently as possible. The company's data center GPUs excel at performing billions of matrix multiplications necessary to train and run neural networks due to their parallel architecture—hardware architectures that originated as video game graphics accelerators now power the generative AI boom.
Nanotronics CEO Matthew Putman told BI that the best way to scale production is four cubefabs arranged like clover.
Nanotronics
New York-based Nanotronics builds compact, modular semiconductor plants called "Cubefabs."
Its goal is to improve chip-making to be more time and cost-efficient, enabling factories to run with fewer workers.
"The vision is that any region — whether in the Global South or the United States — should be able to produce what it needs locally," CEO Matthew Putman told BI.
In his 1986 book "Engines of Creation," engineer K. Eric Drexler — often called the godfather of nanotechnology — made a prediction.
"The coming era of molecular machines will mean the end of many limits: the limit of scarcity, the limit of slow development, the limit of ignorance enforced by the lack of tools," he wrote.
Reading those words a few years later, when he was 16, Matthew Putman started thinking.
"Our bodies work as these little micro-machines where you have ribosomes and enzymes and things that are working and replicating and making things all the time, but our factories work the way that they've worked for the last hundred years," Putman told Business Insider he thought at the time.
He wondered how a world would look "where you don't have large assembly lines, you don't have smokestacks, you instead just make things so perfectly," he said. Putman became fascinated by the possibilities of machines that are "atomically precise."
It wasn't until the recent AI boom, however, that the idea really took off with fabrication plants.
Putman, now 50, is the CEO of Brooklyn-based Nanotronics, which he cofounded with his father in 2010. The company started out building microscopes and tools to detect defects in semiconductors, among other materials. Now, it builds small, modular semiconductor manufacturing plants called Cubefabs.
While the biggest fabs in the country are often millions of square feet in size, Cubefabs measure anywhere from 25,000 square feet for the smallest units up to about 60,000 square feet for a full-sized fab. They're adaptable, and the company says they can be assembled in under a year in most places on Earth.
They're also smart — thanks to the power of AI — so they can self-monitor their production and improve in real time, the company said. And they're relatively cheap, costing a minimum of $30 to $40 million, compared to large fabs that can cost billions to build.
With President Donald Trump back in the White House and pledging to reinvigorate US manufacturing, a new opening has emerged for Nanotronics — even as sweeping tariffs challenge companies that produce or depend on semiconductors.
Matthew Putman, CEO and cofounder of Nanotronics, is rethinking chip fabs.
Bonfire Partners
Putman says that in the long term, the tariffs will bolster domestic innovation.
Tariffs "should be a wake-up call — a push to create something better than what either the US or China has done before," he told BI in a video interview from the Nanotronics headquarters in Brooklyn Navy Yard. "If we get this right, American innovation won't just protect our future — it could help redefine global progress in a way that benefits humanity."
Putman says compact, modular factories are exactly that.
"Your factory should be incredibly small," Putman said, gesturing to the room behind him. "Eventually, it could be the size of this room."
The 'Ikea of factories'
Semiconductor manufacturing has surged since the launch of ChatGPT. Global annual revenue for the industry is expected to reach more than $1 trillion by 2030, according to McKinsey & Company.
In the US, despite legislation subsidizing domestic semiconductor production, fabs are more expensive to construct and maintain than those built in places like mainland China and Taiwan, McKinsey says. The US also suffers from a shortage of qualified labor, which can delay construction timelines, according to the firm.
To attempt to solve some of these issues, Nanotronics teamed up with architecture firm Rogers Partners and engineering firm Arup to design compact factories. Each one runs with 37 people, but Putman says the ideal setup is four factories — about 180 workers total — which allows them to scale up without halting production.
"It's like the Ikea of factories," Putman said. The company has raised $182 million to date from firms including Peter Thiel's Founders Fund.
Cubefabs can be used to produce chips that span a range of uses across electronics applications, electric vehicles, and photodetectors for cube satellites, Putman said.
"The more precise we make things, the more abundance we bring to the world," he said. "The business of making things grow bigger and bigger starts small — molecular small."
Building on the foundational research of scientist Philippe Bove — now chief scientist at Nanotronics — the company also uses gallium oxide — a type of semiconductor that can handle more power than traditional materials like silicon — to produce advanced chips.
The company plans to have its first installation set up in New York within the next 18 months.
"These fabs do not require billions in capital expenditure or large populations of highly trained workers," Putman told BI in a follow-up email. "The vision is that any region — whether in the Global South or the United States — should be able to produce what it needs locally."
The White House confirmed that Donald Trump has extended the deadline for a TikTok sale for a third time, Reuters reported Wednesday.
Now, China-based ByteDance has 90 days to divest its US assets or potentially be forced to shut down US operations. Trump's announcement came one day before the June 19 deadline he established through his last extension. That extension was necessary after Vice President JD Vance failed to make a "high-level" deal expected in April, which Politico branded a "make or break moment" where Vance could have secured a big win.
Yesterday, Trump told reporters on Air Force One that China was holding up the sale, suggesting that China may have an upper hand in TikTok negotiations, and perhaps TikTok is losing its sheen as a US bargaining chip in Trump's bigger trade war.
The semiconductor industry is bracing to potentially lose more than $1 billion once Donald Trump announces chip tariffs.
Two sources familiar with discussions between chipmakers and lawmakers last week told Reuters that Applied Materials, Lam Research, and KLA—three of the largest US chip equipment makers—could each lose about "$350 million over a year related to the tariffs." That adds up to likely more than $1 billion in losses between the three, and smaller firms will likely face similarly spiked costs, estimating losses in the tens of millions.
Some chipmakers are already feeling the pain of Trump's trade war, despite a 90-day pause on reciprocal tariffs and a tenuous exception for semiconductors and other electronics.
Nvidia CEO Jensen Huang appears to have struck a deal with the Trump administration to avoid export restrictions on the company’s H20 AI chips. The H20, the most advanced Nvidia-produced AI chip that can still be exported from the U.S. to China, was reportedly spared thanks to a promise from Huang to invest in new […]
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