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

The Trump administration has initiated an unprecedented strategy to address the surging energy demands of the artificial intelligence sector, aiming to compel major technology companies to directly fund national grid infrastructure. In a move directed at PJM Interconnection, the nation's largest grid operator, the White House is pushing for emergency power auctions that would allow hyperscalers to bid on 15-year generation contracts—potentially catalyzing $15 billion in new power plant development.

Key Points

• Energy Mandate: The White House is directing PJM Interconnection to hold emergency auctions for 15-year power contracts, shifting grid infrastructure costs to tech giants.
• Antitrust Vigilance: FTC Chairman Andrew Ferguson warned that "acqui-hires"—where companies buy talent rather than entities to bypass review—are under strict scrutiny.
• AI Valuation Surge: Coding startup Replit is reportedly nearing a $9 billion valuation, tripling its previous worth, driven by the rise of "vibe coding."
• Semiconductor Expansion: TSMC has committed to building four additional plants in Arizona as part of a trade deal lowering tariffs on Taiwanese goods to 15%.
• Robotics Boom: Barclays forecasts the humanoid robot market will reach $200 billion by 2035 as unit production costs plummet.

Infrastructure and Energy: Paying for the AI Boom

The intersection of energy policy and technology infrastructure has become a primary focus for the administration. Data centers powering AI models are consuming electricity at rates that threaten grid stability, prompting a shift from traditional 12-month capacity auctions to long-term commitments. According to White House officials, the proposed 15-year contracts are designed to provide the pricing stability necessary for developers to build new power generation facilities.

This policy aims to solve a "chicken and egg" problem in the energy sector: grid operators need capital to build infrastructure, while tech companies need guaranteed power to sustain operations. However, the market reaction has been mixed. While the move offers long-term stability, the immediate pressure on utilities caused the S&P Utilities Index to decline, with major players like Constellation and Vistra seeing significant drops.

Marta Norton, Chief Investment Strategist at Empower, noted that while timelines for data centers are often in flux, the bottleneck is real.

"We’re reaching that phase that we had anticipated within the AI lifecycle, and that's the bottleneck phase, where the building and the demand and the supply are exponentially moving higher, and that's putting us at a point where we're facing constraints... The progression creates clarity."

Regulatory Landscape: The FTC on 'Acqui-hires'

Federal Trade Commission (FTC) Chairman Andrew Ferguson addressed the growing trend of "acqui-hires"—deals structured to acquire a startup's talent and intellectual property without formally acquiring the company, often to avoid Hart-Scott-Rodino (HSR) antitrust review. This structure has been utilized recently in high-profile AI deals, such as those involving Nvidia and Groq.

Ferguson emphasized that while the FTC under the current administration aims to avoid bureaucratic delays, it will not tolerate evasion of legal statutes. He signaled that the agency is examining these deal structures to ensure they trigger the appropriate reviews when assets or stock are effectively changing hands.

"You don't need to structure deals as a clever attempt to get around pre-merger review. You'll get a fair shake at the FTC... We're not going to let the process be the punishment anymore. But it is important to us to make sure that people aren't going to use clever deal structures to get around pre-merger review."

Ferguson also confirmed the FTC is preparing to enforce the "Take It Down Act," targeting platforms that host non-consensual deepfake images, with enforcement set to begin in spring 2026.

Market Movers: Chip Manufacturing and AI Software

In the semiconductor sector, a significant trade agreement between the United States and Taiwan has lowered tariffs on Taiwanese goods from 20% to 15%. In exchange, TSMC (Taiwan Semiconductor Manufacturing Company) has committed to a massive expansion of its U.S. footprint. The deal involves the construction of four additional manufacturing plants in Arizona through the 2030s, bringing the total to ten planned facilities. This expansion represents a potential aggregate investment of $100 billion, reinforcing the U.S. supply chain for advanced AI chips.

Simultaneously, in the software sector, AI coding startup Replit is finalizing a funding round that would value the company at $9 billion, up from $3 billion just four months prior. The round is reportedly led by existing investor Georgian. The surge in valuation reflects a broader industry shift toward "vibe coding," where non-developers use AI tools to prototype and ship applications, expanding the total addressable market for coding platforms.

Future Forecasts: Robotics and Defense

Beyond current infrastructure and software, capital is flowing heavily into future hardware. Barclays released a report forecasting the humanoid robot market could swell to $200 billion by 2035. The viability of this sector is being driven by a dramatic reduction in costs; unit production costs have reportedly dropped from $3 million to approximately $100,000 over the last five years due to improvements in AI models, battery efficiency, and precision manufacturing.

"AI is indeed getting very physical, and I think humanoid robots are at the forefront of this trend... The reality is that humans are getting older... Also, humans don't really want to live in rural areas anymore... This is precisely where humanoids enter the picture."

In the defense sector, European investor Digital Transformation Capital Partners (DTCP) is raising a $580 million fund focused on defense startups. Backed by corporate giants like Porsche and Deutsche Telekom, the fund marks a cultural shift in Europe, where private capital has historically been hesitant to back military technology.

As the market heads into Q4 earnings season, investors will be scrutinizing capital expenditure guidance to see if the massive spending on AI infrastructure—from power plants to robots—translates into revenue growth and deployment beyond the experimental phase.