AI industry says Trump plans to tax chips in the “single dumbest way imaginable”

The AI industry criticized a reported Trump administration plan to tax AI chips and data centers as poorly designed and counterproductive.

Technology industry representatives say the Trump administration plans to tax chips and data centers as part of a strategy to win the AI race, and they called the approach flawed. Critics argue the mechanism targets data centers in a way that could raise costs and slow US compute buildout. The plan's design, described as perplexing by industry figures, differs from traditional tariff approaches.

• Reported plan taxes chips and data centers to advance US AI competitiveness
• Industry leaders called the tax design the worst imaginable approach
• Policy could raise costs of US AI data center expansion