This week in tech policy, power and influence are colliding in unprecedented ways. From Elon Musk’s deepening ties to Congress and the White House to Sam Altman’s sharp rejection of Musk’s $97.4 billion bid for OpenAI, the battle for AI dominance is reaching new heights. Meanwhile, the Trump administration has scrapped Biden-era AI regulations, setting the stage for unchecked development, and lawmakers are grappling with the implications. As Washington navigates the future of artificial intelligence, free speech, and regulatory oversight, our latest edition unpacks the key developments shaping the intersection of technology and policy. Dive in to stay ahead of the curve.

In this week’s Nimitz Tech:

• Regulation: Trump’s sweeping rollback of AI regulations has cleared the way for rapid innovation—but critics warn it may unleash unchecked risks with no safeguards in place.

• Buy Out: Sam Altman swiftly rejected Elon Musk’s $97.4 billion bid for OpenAI with a sharp counteroffer—buying X for $9.74 billion—escalating their ongoing tech feud.

• AI Race: France is making a bold play in the AI race, unveiling a staggering €109 billion in investments to challenge U.S. and global dominance.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, February 12th

• ☢️ House Hearing: “From Transformative Science to Technological Breakthroughs: DOE’s National Laboratories.” House Committee on Science, Space, and Technology; Energy Subcommittee. Hearing scheduled for 10:00 AM in 2318 Rayburn HOB. Watch here.

• 🦾 House Hearing: “AI in Manufacturing: Securing American Leadership in Manufacturing and the Next Generation of Technologies.” House Committee on Energy and Commerce; Subcommittee on Commerce, Manufacturing, and Trade. Hearing scheduled for 10:00 AM in 2123 Rayburn HOB. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• President Trump has revoked Biden-era AI protections, eliminating rules meant to prevent bias, discrimination, and national security risks, while promising a new AI action plan free from "ideological bias" within 180 days. The policy shift, led by venture capitalist David Sacks, has left companies uncertain about compliance, with concerns that AI development may now proceed without meaningful guardrails. Meanwhile, Trump has championed the $500 billion Stargate AI initiative, a private venture led by OpenAI, Oracle, and SoftBank, as a move to secure American dominance in AI. Critics argue that removing regulations exposes Americans to AI-driven fraud, unfair labor practices, and privacy threats, while legal experts warn that companies will still face consequences for AI-related harms. As the U.S. government steps back from AI oversight, multinational companies face regulatory clashes with stricter European AI laws, raising questions about global AI governance and ethical deployment.

• Elon Musk has emerged as a central figure in President Trump’s administration, using his control of X to amplify government messaging, attack critics, and advance his own policy agenda as head of the Department of Government Efficiency (DOGE). His dual role as a White House adviser and owner of a major social media platform has raised concerns about conflicts of interest, transparency, and the concentration of power. Musk has leveraged X to promote Trump’s policies, intimidate opponents, and even announce government decisions, such as shutting down agencies, without official confirmation. Critics argue that his unchecked influence, lack of transparency, and willingness to use X as a tool for governance undermine democratic norms, while supporters praise his direct engagement with the public. As Musk’s role continues to expand, questions persist about where his personal business interests end and government authority begins.

• Elon Musk and Rep. Jim Jordan have forged a close political alliance, with Jordan leveraging his role as House Judiciary Chair to support Musk’s deregulation efforts and Musk providing Jordan with influence in conservative circles. Their collaboration has already resulted in the shutdown of the Global Alliance for Responsible Media and investigations into alleged censorship of conservative voices on social media. Jordan, a longtime critic of Big Tech, has also signaled openness to Musk’s push for high-skilled immigration reform, despite his traditionally hardline stance. Meanwhile, Jordan has used his subpoena power to defend Musk’s companies, including intervening in the Justice Department’s lawsuit against SpaceX. Critics, including Democratic Rep. Gerry Connolly, warn that Musk’s influence in government is unchecked and riddled with conflicts of interest. As their partnership deepens, Jordan is expected to escalate his efforts to challenge Musk’s adversaries while championing his agenda in Trump’s Washington.

National

• OpenAI CEO Sam Altman dismissed Elon Musk’s $97.4 billion bid to acquire OpenAI’s nonprofit arm with a sarcastic retort on X, offering to buy Musk’s platform for $9.74 billion instead. The bid, significantly lower than OpenAI’s recent $157 billion valuation and well below its anticipated $260 billion valuation, is backed by Musk’s xAI and several major investors. Musk, who co-founded OpenAI but later left, has sued Altman and the company, claiming they abandoned their original nonprofit mission in pursuit of profit. The exchange comes amid growing tensions between the two, particularly after Musk criticized OpenAI’s involvement in Trump’s $500 billion Stargate AI infrastructure project. The public back-and-forth highlights the intensifying power struggle over the future of AI leadership.

• OpenAI is advancing its plan to reduce reliance on Nvidia by finalizing the design of its first in-house AI chip, set for fabrication at Taiwan Semiconductor Manufacturing Co. (TSMC) later this year. Led by ex-Google engineer Richard Ho, OpenAI's chip division has doubled to 40 members and is collaborating with Broadcom to develop the silicon, which will primarily be used for running AI models. If successful, the move could give OpenAI greater leverage in chip negotiations and serve as an alternative to Nvidia’s GPUs, which currently dominate the AI market. While the project is ambitious, the company faces high costs—potentially reaching $500 million per iteration—and the challenge of scaling to compete with industry giants like Google and Amazon.

International

• French President Emmanuel Macron announced €109 billion ($112 billion) in private investments to accelerate France’s AI ecosystem, positioning the country as a major player in AI development. The funding, gathered from global investors such as the UAE, Brookfield, and Bpifrance, will primarily support AI-focused data centers, with additional commitments expected from major French companies. Macron drew parallels between this initiative and the U.S.'s $500 billion Stargate project, emphasizing France’s advantage in nuclear-powered, low-carbon electricity as a key attractor for AI infrastructure. He also addressed concerns about French AI startups relocating to the U.S., citing Europe's ongoing competitiveness and emerging models like DeepSeek's more efficient AI approach. Meanwhile, Mistral, a leading European AI company, pledged billions to build a major AI cluster in Essonne, reinforcing France’s ambitions to become a hub for AI innovation.

FOR FUN

• 🐶 Pet Portraits, Pawlentine's Day Party | 4 - 7 p.m. | $30 | Shaw

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