Trump’s AI Action Plan prioritizes open-source models, reshapes government tech

President Donald Trump signed the AI Action Plan, establishing an “open-weight first” approach to artificial intelligence development that explicitly supports open-source AI models and removes regulatory barriers for government AI adoption. The plan signals a fundamental shift from the previous administration’s cautious regulatory stance, potentially accelerating enterprise AI deployment while creating new compliance challenges for businesses working with federal agencies.

What you should know: The Action Plan restructures how government agencies can contract with AI providers and sets clear priorities for American AI leadership.

• The plan removes references to misinformation and diversity, equity and inclusion from National Institute of Standards and Technology (NIST) guidelines.
• It prevents agencies from working with foundation models that have “top-down agendas” and orders research into Chinese models like DeepSeek, Qwen and Kimi to ensure they’re not aligned with the Chinese Communist Party.
• Unlike legislative acts, this executive order primarily directs government offices but creates ripple effects throughout the AI ecosystem.

The big picture: This represents a dramatic pivot toward open-source AI development as a strategic national priority.

• “We need to ensure America has leading open models founded on American values. Open-source and open-weight models could become global standards in some areas of business and academic research worldwide,” the plan states.
• The Department of Energy and National Science Foundation will develop “AI testbeds for piloting AI systems in secure, real-world settings.”
• Cloud providers must prioritize Department of Defense access, potentially bumping enterprises down already crowded waiting lists.

Why this matters: The plan creates both opportunities and uncertainties for enterprise AI adoption, with analysts noting that government AI positions always reshape the broader ecosystem.

• “This plan will likely shape the ecosystem we all operate in — one that rewards those who can move fast, stay aligned and deliver real-world outcomes,” Matt Wood, commercial technology and innovation officer at PwC, a global consulting firm, told VentureBeat.
• Companies working with government should prepare for additional scrutiny on their AI models and applications to ensure alignment with administration values.
• The emphasis on speed and scale over regulatory shelters could accelerate innovation but also increase compliance complexity.

Key details: The Action Plan operates through three main pillars designed to position America as the global AI leader.

• Accelerating AI innovation through streamlined testing and evaluation processes.
• Building American AI infrastructure by removing red tape for data center construction.
• Leading in international AI diplomacy and security through export and import guidelines.

What they’re saying: Industry leaders have responded enthusiastically to the open-source emphasis, while analysts highlight both opportunities and risks.

• “It’s time for the American AI community to wake up, drop the ‘open is not safe’ bullshit, and return to its roots: open science and open-source AI,” said Clement Delangue from Hugging Face, an AI development platform.
• Sesh Iyer, chair of BCG X North America at Boston Consulting Group, noted this could give enterprises more confidence in adopting open-source large language models and encourage closed-source providers “to rethink proprietary strategies.”
• Charleyne Biondi from Moody’s Ratings, a credit rating agency, warned that “current regulatory fragmentation across U.S. states could create uncertainty for developers and businesses.”

Enterprise implications: While the plan doesn’t directly regulate private companies, it creates a new operating environment that rewards agility and government alignment.

• “Real acceleration happens inside the enterprise: skills, governance, and the ability to deploy responsibly. Those who’ve already built that muscle will be best positioned,” Wood explained.
• Companies should expect an AI development environment that prioritizes experimentation over regulatory compliance.
• The plan may lower external friction through faster permits and increased data center capacity, but enterprises must still build internal governance capabilities.