Why tariffs are kryptonite to the AI business

Image credit: HUNG QUACH from Pixabay. Article by Scott Rosenberg. Axios – April 8, 2025.

The AI industry’s two-and-a-half-year investment spree is about to enter a new phase of turmoil and doubt thanks to President Trump’s massive tariffs. Why it matters: Key industry players backed Trump or made nice with him after his election win, but the centerpiece of his economic policy makes an AI slowdown — or even a crash — much more likely. The big picture: The AI giants need cheap data and cheap energy to keep building bigger models, and mountains of cash to pay for it all. […]

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