This week, the White House unveiled its master plan to win the AI race by essentially getting rid of regulation, building power plants like it's SimCity, and telling states to fall in line or lose funding. Meanwhile, defense tech companies raised a record $13B globally because apparently, the best way to ensure world peace is to build autonomous war machines.

As we continue to build at Context Ventures, we've launched Startup Intros with a simple mission: to help early-stage founders find the right investors, faster and smarter.

🎯 BLUF: Bottom Line Upfront

  • Trump's AI Action Plan Goes Full Deregulation: White House orders agencies to torch AI rules within 180 days, bans "woke AI," and threatens to defund states that dare regulate

  • Data Centers Will Devour 20% of Power by 2030: Companies can now build their own power plants because apparently the grid wasn't designed for AI's appetite

  • Japan's $550B "Signing Bonus": The U.S. scored a trade deal giving us 90% of profits from Japanese AI projects - the art of the deal meets the art of highway robbery

  • Defense Tech's $13B Gold Rush: VCs deployed $1.78B in Q1 alone (82% surge), with late-stage deals hogging 71% of funding as everyone races to build tomorrow's weapons

  • ChatGPT Gets Its Own PC: OpenAI's new agent mode lets ChatGPT think, plan, and act autonomously - Skynet says hello

🏛️ The White House’s Bold Play to Dominate & Win the AI Race

The White House just dropped its master plan to dominate AI, and it reads like a Silicon Valley fever dream written by someone who really hates paperwork.

At yesterday's summit co-hosted with the All-In Podcast crew, Trump unveiled “America's AI Action Plan,” which is structured around three core pillars:

🚀 1) Accelerate AI Innovation (While Deleting All the Rules)

  • Regulation Rollback: Dismantle "onerous" federal and state-level regulatory barriers. Agencies are directed to fast-track removals within 180 days.

  • State Compliance Theater: States that impose AI restrictions lose federal funding (subtle!) to prevent a "patchwork of 50 different state regulatory regimes." 

  • "Woke AI" Ban: Federal agencies are directed to use AI that promotes "truth, fairness, and strict impartiality," while avoiding AI that exhibits "partisan bias or ideological agendas."

  • Open Source Push: Encourage open models to make US systems the global standard, and seek industry and academic input for further deregulation.

⚡ 2) Build American AI Infrastructure (aka SimCity: Data Center Edition)

  • Rapid Buildout: Expedite permitting and invest massively in data centers, chip fabs, and supporting energy infrastructure. Crusoe's CEO, Chase Lochmiller, noted that AI is "the biggest capital investment in human history."

  • Energy Emphasis: As Sec Bessent said, "You can't create new industries without energy," and the admin is "all in" on natural gas and nuclear. This includes allowing companies to build their own power plants and sell excess energy back to the grid.

  • Power Plant Free-for-All: Companies can build their own power plants and sell excess to the grid.

  • 20% by 2030: Data centers will consume 20% of US power demand growth in 5 years.

🤝 3) Dominate Internationally (and Flood Our Tech Worldwide)

  • Export Controls: Aggressive new measures to block the export of US AI tech to China and other adversaries, closing loopholes and monitoring third-country rerouting.

  • Allied “Coordination:” Partners are encouraged to adopt US tech standards or potentially get frozen out, while support will be given to insulate allied supply chains.

  • Trade Deals: Sec Howard Lutnick, a key trade negotiator, highlighted a huge deal with Japan (a $550B "signing bonus") for the US, opening Japan's market and giving the US 90% of project profits. This is seen as a blueprint for future Asian deals.

👷 Workforce & Economic Impact

  • Job Creation, Not Displacement: AI is a "job creation engine," not a destroyer. Chris Power (Hadrian) demonstrated how AI-powered factories are re-industrializing America and creating "thousands of jobs" for people even without prior factory experience. 

  • Leveling the Playing Field: Nvidia's CEO, Jensen Huang, stated that AI is a "great equalizer" making "everybody a programmer now" and that "if you're not using AI, you're going to lose your job to somebody who uses AI".

  • Talent Development: Depts of Labor and Education are promoting AI skill development, literacy, and vocational pipelines, leveraging apprenticeships and tax incentives. The SBA has rewritten rules to allow SMBs to use federal loans for AI and manufacturing.

White House AI & Crypto Czar David Sacks states this is a "global competition or global race," with "unthinkable" consequences for the US if it loses, given AI's ramifications for the economy and national security.

President Trump himself declared, "America is going to win it".

Supporters believe it's essential for AI competitiveness and national security. However, critics caution that it prioritizes corporate interests over public safety and ethical oversight.

⚡ Quick Hits: Defense & GovTech Tech Edition

Silicon Valley is doubling down on defense as VC money floods into the sector at unprecedented levels. Defense tech has raised a record $13B globally in 2025, with VCs deploying $1.78B in Q1 alone or an 82% surge from the previous quarter. The money is flowing so fast that late-stage deals now get 71% of all funding.

  • Europe's Answer to Anduril Just Hit a €12B Valuation: Munich-based Helsing raised €600M to build AI that pilots fighter jets, swarms drones, and hunts submarines. Their HX-2 drones are already striking Russian targets, while their vision includes deploying 100,000 autonomous drones along Europe's eastern border. Co-founder Torsten Reil says Europe needs to "grow its spine back" through "autonomous mass."

  • Hadrian Raises $260M to Build the Future of Defense Manufacturing: The AI-powered aerospace manufacturer just closed their Series C led by Founders Fund and Lux Capital. They're expanding automated factories to meet surging demand for space and defense components, because apparently, we need robots to build our robots.

  • MP Materials Scores $400M DoD Partnership: The sole US rare earth magnet producer just secured a massive military deal to build "critical supply chains for physical AI." Translation: we're finally building the magnets needed for defense drones and autonomous systems domestically instead of begging China.

  • Anduril Alums Raise $24M to Drag Military Logistics Into the 21st Century: Rune Technologies just got funding to replace the military's spreadsheets and whiteboards with actual software. Co-founder David Tuttle notes the military still runs logistics operations like it's 1995, while everyone else obsesses over "making things go boom."

  • xAI Launches Grok for Government: Elon's AI company just announced a dedicated government product suite, bringing frontier AI to federal, state, and local agencies. The same week Grok went antisemitic on Twitter, they're pitching it to run government services. What could possibly go wrong?

  • OpenAI Opens DC Office to Court Government Clients: OpenAI is launching “The Workshop” in Washington, a showroom where policymakers can test AI tools and get early product previews. They're poaching Anduril's Joe Larson to help run it, betting that hands-on demos will win more government contracts than traditional lobbying.

  • Microsoft's SharePoint Zero-Day Compromises Federal Agencies: Hackers exploited a critical flaw in Microsoft's on-premise SharePoint, breaching US state and federal agencies just as Microsoft faces scrutiny over its China-based engineers working on defense cloud infrastructure. Nothing says "national security" like having your government files exposed while your cloud provider outsources to Beijing.

💸 What Other Startups are Popping Off

Here's a roundup of this week's trending startup activity:

🛠️ AI Developer Tools & Design

  • Trickle - Magic Canvas: The world's first agentic canvas for building apps visually with AI - co-create production-ready apps without writing code

  • Lovable Agent Mode: Autonomous AI that thinks, plans, and acts on its own - explores code, fixes bugs, and fetches resources while you sleep

  • Trae 2.0: SOLO Context Engineer that doesn't just assist with code but thinks, plans, builds, and ships complete features end-to-end

  • Maestro Studio Desktop Beta: Run mobile & web tests in minutes with no CLI or IDE setup - testing automation for devs and non-tech teammates

  • Untitled UI React: World's largest Figma UI kit and React component library - skip months of design with production-ready components

🤖 AI Agents & Automation

  • ChatGPT agent: ChatGPT now thinks and acts, proactively choosing from agentic skills to complete tasks using its own computer

  • Google Gemini Embeddings: SOTA embeddings built on Gemini now available at production scale - if you're doing RAG, this just became your new best friend

  • Jeeva 2.0: Superhuman sales powered by agentic AI - handles everything from lead discovery to personalized outreach while you focus on closing

  • Agents Base Phone Agents: World's first synthetic influencer network running on real phones - turn product photos into AI UGC across thousands of agents

  • Scrapeless–Make.com: No-code web scraping automation - unlock websites, run SERP queries, and integrate with Google Sheets, Airtable, and Notion

  • Deep Research in Le Chat: Mistral's chat assistant gets a major upgrade with deep research capabilities, voice mode, and advanced image editing

🎨 Creative Tools & Content

  • Levio by Jupitrr AI: AI video editing agent that makes editing as easy as chatting - no timelines or skills needed

  • Veo 3 API: Generate videos with audio using Google's Veo 3 - now available for scaled developer use in the Gemini API

  • Suno v4.5+: Swap in your own vocals or instrumentals to create personalized AI music - because sometimes you want to be the star

  • YouWare: World's first vibe coding community with 100K+ creators - build, share, and get inspired by AI-powered projects

  • the gist of: Beautiful, minimalistic personal sites you can create in minutes - because sometimes less really is more

  • Snack Prompt: Community-powered ChatGPT prompts - discover and upvote the best prompts right inside ChatGPT

💼 Business & Productivity Tools

  • Runway: AI hiring tool that adapts to YOUR priorities - upload 50 resumes and get candidates ranked by what actually matters

  • Checklist Genie: Create sharable checklists with just your voice - track daily, weekly, and monthly routines without typing

  • NeetoCal V2: Simplified meeting scheduling that actually works - take control of your calendar without the complexity

  • Krepling Pay: White-labeled checkout engine with one-click purchases - no login required to boost conversion rates

📱 Communication & Digital Wellness

  • Bitchat: Jack Dorsey's anonymous Bluetooth mesh messaging - chat up to 300m away with no internet, perfect for protests and disasters

  • Barrier: Stop doomscrolling with forced breaks - users report 70% less screen time after 30-second unlock delays

  • Ash: The first AI designed specifically for therapy - available 24/7, remembers conversations, and even challenges your thinking

🌟 Editor's Note

At Startup Intros, our mission is to bring the latest founder-investor news straight to your inbox, keeping you ahead in the fast-paced world of Silicon Valley. Our free weekly newsletter delivers curated insights, deals, and trends to help you navigate the startup ecosystem.

Stay tuned for our upcoming paid daily newsletter and fundraising app to help you close your next round!

💭 Parting Thoughts

Silicon Valley spent decades preaching "move fast and break things," but nobody expected the government to take notes. The White House has declared war on AI regulations, while defense startups are vacuuming up billions to build autonomous weapons.

We're simultaneously racing to delete safety guardrails AND arm the robots. 

Forward to a friend or hit reply to let me know what you're seeing in your world.

Till next time,

Dev Chandra
CEO @ Startup Intros
Associate @ Context VC
LinkedIn: /in/devchandra

Tim Hsia
Investor @ Context VC
Co-Founder @ Startup Intros
LinkedIn: /in/timhsia

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