OpenAI to present plans for U.S. AI strategy and an alliance to compete with China
In this photo illustration, the OpenAI logo is displayed on a mobile phone screen with a photo of Sam Altman, CEO of OpenAI.
Didem Mente | Anadolu | Getty Images
OpenAI’s official “blueprint for U.S. AI infrastructure” involves artificial intelligence economic zones, tapping the U.S. Navy’s nuclear power experience and government projects funded by private investors, according to a document viewed by CNBC, which the company plans to present on Wednesday in Washington, D.C.
The blueprint also outlines a North American AI alliance to compete with China’s initiatives and a National Transmission Highway Act “as ambitious as the 1956 National Interstate and Defense Highways Act.”
In the document, OpenAI outlines a rosy future for AI, calling it “as foundational a technology as electricity, and promising similarly distributed access and benefits.” The company wrote that investment in U.S. AI will lead to tens of thousands of jobs, GDP growth, a modernized grid that includes nuclear power, a new group of chip manufacturing facilities and billions of dollars in investment from global funds.
Now that Donald Trump is President-elect, OpenAI has made clear its plans to work with the new administration on AI policy, and the company’s Wednesday presentation outlines its plans.
Trump plans to repeal President Biden’s executive order on AI, according to his campaign platform, stating that it “hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology” and that “in its place, Republicans support AI Development rooted in Free Speech and Human Flourishing.”
OpenAI’s presentation outlines AI economic zones co-created by state and federal governments “to give states incentives to speed up permitting and approvals for AI infrastructure.” The company envisions building new solar arrays and wind farms and getting unused nuclear reactors cleared for use.
“States that provide subsidies or other support for companies launching infrastructure projects could require that a share of the new compute be made available to their public universities to create AI research labs and developer hubs aligned with their key commercial sectors,” OpenAI wrote.
OpenAI also wrote that it foresees a “National Transmission Highway Act” that could expand power, fiber connectivity and natural gas pipeline construction. The company wrote it needs “new authority and funding to unblock the planning, permitting, and payment for transmission,” and that existing procedures aren’t keeping pace with AI-driven demand.
The blueprints say, “The government can encourage private investors to fund high-cost energy infrastructure projects by committing to purchase energy and other means that lessen credit risk.”
A North American AI Alliance and investment in more U.S. data centers
OpenAI also foresees a North American AI alliance of Western countries that could eventually expand to a global network, such as a “Gulf Cooperation Council with the UAE and others in that region.”
The company also outlined its vision for nuclear power, writing that although China “has built as much nuclear power capacity in 10 years as the US built in 40,” the U.S. Navy operates about 100 small modular reactors (SMRs) to power naval submarines, and leveraging the Navy’s expertise could lead to building more civilian SMRs.
OpenAI’s infrastructure blueprint aligns with what Chris Lehane, OpenAI’s head of global policy, told CNBC in a recent interview. He sees the Midwest and Southwest as potential core areas for AI investment.
“Parts of the country that have been ‘left behind,’ as we enter the digital age, where so much of the economics and particularly economic benefits flow to the two coasts… Areas like the midwest and the southwest are going to be the types of places where you have the land and ability to do wind farms and to do solar facilities, and potentially to do some part of the energy transition — potentially do nuclear facilities,” Lehane said.
The infrastructure, Lehane explained, is contingent on the U.S. maintaining a lead over China in AI.
“[In] Kansas and Iowa, which sits on top of an enormous amount of agricultural data, think about standing up a data center,” Lehane said. “One gigawatt, which is a lot, taking, you know, 200-250 megawatts, a quarter of that, and doing something with their public university systems to create an agricultural-based LLM or inference model that would really serve their community but also make them a center of agricultural AI.”
Lehane cited an estimate that the US will need 50 gigawatts of energy by 2030 to support the AI industry’s needs and to compete against China, especially when the country approved 20 nuclear reactors over the past two years and 11 more for next year.
“We don’t have a choice,” Lehane said. “We do have to compete with that.”
Xpeng CEO He Xiaopeng speaks to reporters at the electric carmaker’s stand at the IAA auto show in Munich, Germany on September 8, 2025.
Arjun Kharpal | CNBC
Germany this week played host to one of the world’s biggest auto shows — but in the heartland of Europe’s auto industry, it was buzzy Chinese electric car companies looking to outshine some of the region’s biggest brands on their home turf.
The IAA Mobility conference in Munich was packed full of companies with huge stands showing off their latest cars and technology. Among some of the biggest displays were those from Chinese electric car companies, underscoring their ambitions to expand beyond China.
Europe has become a focal point for the Asian firms. It’s a market where the traditional automakers are seen to be lagging in the development of electric vehicles, even as they ramp up releases of new cars. At the same time, Tesla, which was for so long seen as the electric vehicle market leader, has seen sales decline in the region.
Despite Chinese EV makers facing tariffs from the European Union, players from the world’s second-largest economy have responded to the ramping up of competition by setting aggressive sales and expansion targets.
“The current growth of Xpeng globally is faster than we have expected,” He Xiaopeng, the CEO of Xpeng told CNBC in an interview this week.
Aggressive expansion plans
Chinese carmakers who spoke to CNBC at the IAA show signaled their ambitious expansion plans.
Xpeng’s He said in an interview that the company is looking to launch its mass-market Mona series in Europe next year. In China, Xpeng’s Mona cars start at the equivalent of just under $17,000. Bringing this to Europe would add some serious price competition.
Meanwhile, Guangzhou Automobile Group (GAC) is targeting rapid growth of its sales in Europe. Wei Haigang, president of GAC International, told CNBC that the company aims to sell around 3,000 cars in Europe this year and at least 50,000 units by 2027. GAC also announced plans to bring two EVs — the Aion V and Aion UT — to Europe. Leapmotor was also in attendance with their own stand.
There are signs that Chinese players have made early in roads into Europe. The market share of Chinese car brands in Europe nearly doubled in the first half of the year versus the same period in 2024, though it still remains low at just over 5%, according to Jato Dynamics.
“The significant presence of Chinese electric vehicle (EV) makers at the IAA Mobility, signals their growing ambitions and confidence in the European market,” Murtuza Ali, senior analyst at Counterpoint Research, told CNBC.
Tech and gadgets in focus
Many of the Chinese car firms have positioned themselves as technology companies, much like Tesla, and their cars highlight that.
Many of the electric vehicles have big screens equipped with flashy interfaces and voice assistants. And in a bid to lure buyers, some companies have included additional gadgets.
For example, GAC’s Aion V sported a refrigerator as well as a massage function as part of the seating.
The Aion V is one of the cars GAC is launching in Europe as it looks to expand its presence in the region. The Aion V is on display at the company’s stand at the IAA Mobility auto show in Munich, Germany on September 9, 2025.
Arjun Kharpal | CNBC
This is one way that the Chinese players sought to differentiate themselves from legacy brands.
“The chances of success for Chinese automakers are strong, especially as they have an edge in terms of affordability, battery technology, and production scale,” Counterpoint’s Ali said.
Europe’s carmakers push back
Legacy carmakers sought to flex their own muscles at the IAA with Volskwagen, BMW and Mercedes having among the biggest stands at the show. Mercedes in particular had advertising displayed all across the front entrance of the event.
BMW, like the Chinese players, had a big focus on technology by talking up its so-called “superbrain architecture,” which replaces hardware with a centralized computer system. BMW, which introduced the iX3 at the event, and chipmaker Qualcomm also announced assisted driving software that the two companies co-developed.
Volkswagen and French auto firm Renault also showed off some new electric cars.
Regardless of the product blitz, there are still concerns that European companies are not moving fast enough. BMW’s new iX3 is based on the electric vehicle platform it first debuted two years ago. Meanwhile, Chinese EV makers have been quick in bringing out and launching newer models.
“A commitment to legacy structures and incrementalism has slowed its ability to build and leverage a robust EV ecosystem, leaving it behind fast moving rivals,” Tammy Madsen, professor of management at the Leavey School of Business at Santa Clara University, said of BMW.
While European autos have a strong brand history and their CEOs acknowledged and welcomed the competition this week in interviews with CNBC, the Chinese are not letting up.
“Europe’s automakers still hold significant brand value and legacy. The challenge for them lies in achieving production at scale and adopting new technologies faster,” Counterpoint’s Ali said.
“The Chinese surely are not waiting for anyone to catch-up and are making significant gains.”
Marc Benioff is keeping an eye on Palantir.
The co-founder and CEO of sales and customer service management software company Salesforce is well aware that investors are betting big on Palantir, which offers data management software to businesses and government agencies.
“Oh my gosh. I am so inspired by that company,” Benioff told CNBC’s Morgan Brennan in a Tuesday interview at Goldman Sachs‘ Communacopia+Technology conference in San Francisco. “I mean, not just because they have 100 times, you know, multiple on their revenue, which I would love to have that too. Maybe it’ll have 1000 times on their revenue soon.”
Salesforce, a component of the Dow Jones Industrial Average, remains 10 times larger than Palantir by revenue, with over $10 billion in revenue during the latest quarter. But Palantir is growing 48%, compared with 10% for Salesforce.
Benioff added that Palantir’s prices are “the most expensive enterprise software I’ve ever seen.”
“Maybe I’m not charging enough,” he said.
It wasn’t Benioff’s first time talking about Palantir. Last week, Benioff referenced Palantir’s “extraordinary” prices in an interview with CNBC’s Jim Cramer, saying Salesforce offers a “very competitive product at a much lower cost.”
The next day, TBPN podcast hosts John Coogan and Jordi Hays asked for a response from Alex Karp, Palantir’s co-founder and CEO.
“We are very focused on value creation, and we ask to be modestly compensated for that value,” Karp said.
The companies sometimes compete for government deals, and Benioff touted a recent win over Palantir for a U.S. Army contract.
Palantir started in 2003, four years after Salesforce. But while Salesforce went public in 2004, Palantir arrived on the New York Stock Exchange in 2020.
Palantir’s market capitalization stands at $406 billion, while Salesforce is worth $231 billion. And as one of the most frequently traded stocks on Robinhood, Palantir is popular with retail investors.
Salesforce shares are down 27% this year, the worst performance in large-cap tech.
Salesforce and Palantir year to date stock chart.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment11 months agoHere are the best electric bikes you can buy at every price level in October 2024