By Tae Kim

The Trump administration believes artificial intelligence has the potential to profoundly change the world and is looking to relax regulations to enable the rapid innovation of the technology, but within the U.S.

"The Trump administration believes AI will have countless revolutionary applications in economic innovation, job creation, national security, healthcare, free expression and beyond," Vice President JD Vance said at the AI Action Summit in Paris on Tuesday.

Vance emphasized that excessive regulation or an overemphasis on AI safety could cripple the technology just as it is poised to take off and benefit society, including for both large and small companies. He also criticized European governments for over-regulating American technology companies, saying that could stifle the innovation needed for advances in AI.

"To restrict its development now will not only unfairly benefit incumbents in the space, it would mean paralyzing one of the most promising technologies we have seen in generations," he said.

The vice president also vowed the Trump administration would implement policies to make sure AI systems and AI chips will be made domestically.

"To safeguard America's advantage the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American designed and manufactured chips," he said.

About 90% of the world's most advanced chips, including the main processors inside mobile phones, AI graphics processing units, and personal computers, are made in Taiwan by Taiwan Semiconductor Manufacturing Co. TSMC is building some plants in Arizona, but it will be a fraction of its worldwide capacity.

Intel has tried to provide an alternative to TSMC by offering chip-manufacturing foundry services to other semiconductor companies, but with limited success thus far.

In early trading Tuesday, Intel shares rose by 6.1% to $20.97, while Nvidia stock traded down 0.1% to $133.38.

Vance seemed to hint that Trump administration may take a different approach than the Biden administration in allowing AI companies and AI chip makers such as Nvidia to sell their products abroad.

"This administration will ensure that American AI technology continues to be the gold standard worldwide and we are the partner of choice for others, foreign countries and certainly businesses," Vance said.

In January, the Biden administration issued an expansion of restrictions on AI chip exports, licensing approvals, or caps to more than 120 countries beyond China. The rules won't take affect for several months and are subject to revision by the Trump administration.

Write to Tae Kim at tae.kim@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 11, 2025 11:22 ET (16:22 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.