Trump Wants Big Tech to Pay for Power | Bloomberg Tech 1/16/2026

Key Concepts

• AI & Energy Consumption: The increasing energy demands of AI data centers and the potential for tech companies to contribute to infrastructure costs.
• Semiconductor Investment: The US-Taiwan agreement to boost semiconductor manufacturing in the US, particularly by TSMC, with a potential $100 billion investment.
• Acquihires & Antitrust: The FTC’s scrutiny of “acquihires” – acquisitions primarily for talent – and potential antitrust concerns.
• Humanoide Robotics Market: Barclays’ revised forecast for the humanoid robotics market, projecting a $200 billion market by 2035.
• Credit Card Rate Caps: President Trump’s proposal to cap credit card interest rates and the potential impact on the financial system.
• AI in Banking: The transition of AI from experimentation to full deployment within financial institutions, impacting fraud detection, credit risk assessment, and operational efficiency.

The Trump Administration and Tech Energy Costs

The Trump administration is taking unprecedented steps to address surging energy prices linked to the growth of AI data centers. A White House official announced plans to direct PJM Interconnection, the largest grid operator, to hold an emergency power auction. This auction will solicit bids for 15-year contracts, potentially supporting $15 billion in new power plant construction. The administration aims to have tech companies contribute financially to the infrastructure needed to sustain the AI boom. While the administration seeks funding from tech companies, it is also providing them with what they need – stability in funding and infrastructure development. PJM already conducts similar auctions, but typically on 12-month intervals, making the proposed 15-year contracts a significant change. The enthusiasm of PJM and the Secretaries of the Interior and Energy (Doug Burgum and Chris Wright) for this plan remains uncertain, as PJM was not included in the initial White House event.

US-Taiwan Semiconductor Deal

The United States and Taiwan have reached a deal to lower tariffs on some goods and significantly cooperate on semiconductor capacity. Tariffs on goods from Taiwan will be reduced to 15%. More importantly, the agreement outlines a substantial investment in American semiconductor manufacturing, primarily through TSMC. Sources indicate TSMC will commit to building four additional semiconductor manufacturing plants in Arizona by the 2030s, adding to the six already planned. This investment is projected to reach up to $100 billion. TSMC’s stock hit record highs following the announcement, reflecting positive market momentum and strong earnings.

FTC Scrutiny of “Acquihires”

The Federal Trade Commission (FTC) is increasing its scrutiny of “acquihires” – acquisitions of companies primarily for their talent – to determine if they are structured to circumvent pre-merger antitrust review. FTC Chairman Andrew Ferguson stated that the agency is examining these deals to ensure they comply with the Hart-Scott-Rodino (HSR) Act, which requires reporting of certain mergers and acquisitions. The FTC is focusing on whether assets or stock are being acquired in a way that triggers HSR review, and whether the deals are designed to avoid antitrust scrutiny. Ferguson emphasized that the FTC will not allow deal structures to be used to evade the review process and will pursue legal action if necessary. The issue is particularly relevant in the AI sector, where several recent acquisitions have involved significant talent acquisition components.

The Rise of Humanoide Robotics

Barclays has doubled its forecast for the humanoid robotics market, now projecting it to reach $200 billion by 2035. This growth is driven by demographic shifts (an aging population and urbanization), and labor shortages in manufacturing and heavy industry. Currently, around 2,000 humanoid robots are deployed in manufacturing settings. The cost of humanoid robots has decreased significantly in the past five years, from $3 million per unit to $100,000, and is projected to fall further to $15,000. While China currently leads in deployment, the United States is rapidly catching up.

Potential Credit Card Rate Caps

President Trump has proposed a 10% cap on credit card interest rates. This move could significantly reshape the credit card industry, which currently holds $1.2 trillion in balances. Ximena Aleman of Prometeo suggests this could spur innovation in alternative credit solutions, such as “buy now, pay later” services, and necessitate a re-evaluation of the underlying financial infrastructure. The move could also impact the availability of unsecured credit.

AI Integration in Banking

Banks are transitioning from experimenting with AI to fully deploying it across various functions. Initial applications focused on chatbots, but AI is now being integrated into areas like fraud detection, credit risk assessment, and operational efficiency. This integration is particularly beneficial for banks with siloed technology systems, as AI can help unify and streamline operations. The focus is shifting from internal applications to real-time responses and comprehensive solutions.

Notable Quotes

• Andrew Ferguson (FTC Chairman): “We are beginning to examine how these [acquihires] deals work…We are looking at these acquihire deals that rates attention so we can understand when an acquihire is in fact an acquisition there could be covered by premerger review laws.”
• Zornitsa Todorova (Barclays): “A.I. is getting very physical. Humanoide robots are at the forefront.”
• Ximena Aleman (Prometeo): “2025 marks the year in which AI removed from an experimentation to full deployment.”

Technical Terms

• PJM Interconnection: A regional transmission organization (RTO) that coordinates the movement of electricity in all or parts of 13 states and the District of Columbia.
• TSMC (Taiwan Semiconductor Manufacturing Company): The world’s largest dedicated independent semiconductor foundry.
• HSR Act (Hart-Scott-Rodino Antitrust Improvements Act): A US federal law that requires companies to notify the government of certain mergers and acquisitions prior to completion.
• Acquihires: Acquisitions of companies primarily for their talent, rather than their products or technology.
• Buy Now, Pay Later (BNPL): A type of short-term financing that allows consumers to make purchases and pay for them in installments.

Logical Connections

The report flows from macro-level economic and geopolitical issues (energy, semiconductors) to more specific industry trends (acquisitions, robotics, banking). The discussion of the Trump administration’s energy policy sets the stage for the broader conversation about the infrastructure demands of AI. The semiconductor deal highlights the US’s efforts to secure its supply chain. The FTC’s scrutiny of acquihires demonstrates the regulatory response to the rapid pace of innovation. The segments on robotics and banking then explore the potential applications and implications of AI in specific sectors.

Data & Statistics

• $15 billion: Potential investment in new power plants to support the AI boom.
• $100 billion: Projected investment by TSMC in US semiconductor manufacturing.
• $200 billion: Barclays’ forecast for the humanoid robotics market by 2035.
• $1.2 trillion: Total credit card balances in the US.
• 80%: Percentage of the US population with credit cards.
• 30x: Reduction in the cost of humanoid robots over the past five years.

Synthesis/Conclusion

The report paints a picture of a rapidly evolving technological landscape, driven by the growth of AI. This growth is creating both opportunities and challenges, from increased energy demands and supply chain vulnerabilities to regulatory scrutiny and the need for new financial infrastructure. The key takeaway is that the AI revolution is not just about software and algorithms; it requires significant investment in physical infrastructure, careful consideration of antitrust implications, and a proactive approach to adapting existing systems and regulations. The coming months and years will be crucial in determining how these challenges are addressed and how the benefits of AI are distributed.