07-28-2025

Promoting the Export of the American AI Technology Stack

Executive OrderView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: Executive Order 14320 establishes the "American AI Exports Program" to promote the sale and adoption of U.S.-developed artificial intelligence technology worldwide. It aims to create complete "full-stack" export packages—including hardware, software, and AI models—to strengthen alliances and ensure American leadership in the global AI race.

Money: The order does not appropriate new funds but mobilizes existing federal financing tools. This includes direct loans, loan guarantees, equity investments, and political risk insurance to support private sector consortia chosen for the program. The exact financial scope will depend on the projects selected.

Your Impact: For the average American, the most likely direct effect will be economic, through job creation in the tech sector spurred by government-supported export deals. It also aims to shape the global technological environment to reflect U.S. standards, potentially influencing the security and values embedded in future AI products.

Status: This is an Executive Order, signed by the President on July 23, 2025, and is in the implementation phase. The Secretary of Commerce is required to establish the program within 90 days of the order.

What's Actually in the Bill

Executive Order 14320 directs the federal government to create a coordinated national effort to promote the export of comprehensive American artificial intelligence packages. The goal is to counter the influence of adversarial nations in the AI sector by making U.S. technology the global standard.

Core Provisions:

  • Establishes the American AI Exports Program: Within 90 days of the order, the Secretary of Commerce, in consultation with the Secretary of State and the Office of Science and Technology Policy (OSTP), must create a program to support the export of "full-stack" U.S. AI packages.
  • Defines "Full-Stack AI": These packages must include AI-optimized hardware (chips, servers), data infrastructure, AI models, cybersecurity measures, and specific applications for sectors like healthcare, agriculture, or transportation.
  • Industry-Led Proposals: The Department of Commerce will solicit proposals from private industry-led groups. These proposals must identify target countries for export and detail their business model and requested federal support.
  • Mobilizes Federal Financing: The order empowers the Economic Diplomacy Action Group (EDAG) to coordinate and deploy federal financing tools to support selected "priority AI export packages." These tools can include direct loans, loan guarantees, equity investments, and technical assistance.

Stated Purpose (from the Sponsors):

The stated purpose is to preserve and extend American leadership in AI and reduce international dependence on technologies developed by adversaries.

  1. To establish a coordinated national effort to support the American AI industry by promoting the export of full-stack American AI technology packages.
  2. To ensure that American AI technologies, standards, and governance models are adopted worldwide to strengthen relationships with allies and secure continued U.S. technological dominance.

Key Facts:

Affected Sectors: Technology, aD, and any industry that utilizes AI, such as healthcare, finance, transportation, and agriculture.
Timeline: The American AI Exports Program must be established by October 21, 2025. Proposals from industry are to be submitted within 90 days of the public call.
Scope: Global, with a focus on exporting to allied nations and regional blocs to counter competitors, particularly China.

The Backstory: How We Got Here

Timeline of Events:

The Rise of AI Competition (2010s-Early 2020s):

The past decade has seen artificial intelligence evolve from a niche academic field into a foundational technology impacting economic growth and national security. The U.S. and China have emerged as the two primary global players in AI, leading to what many term an "AI race." China, with its 2017 "New Generation AI Development Plan," explicitly aimed to become the world leader in AI by 2030, leveraging close collaboration between the government and its tech giants.

In response, the U.S. has taken several steps to maintain its edge. Successive administrations have implemented export controls on critical hardware, like advanced semiconductor chips, to slow Chinese progress. These controls, first tightened significantly in October 2022, aimed to prevent China from acquiring the high-performance chips necessary for training advanced AI models.

The Shift to Proactive Export Promotion (2024-2025):

While export controls were a defensive measure, a consensus grew that a proactive strategy was also necessary. Simply restricting technology to adversaries was not enough; the U.S. needed to actively promote its own technology to friendly nations. This led to the formation of the Economic Diplomacy Action Group (EDAG) in June 2024, tasked with bolstering U.S. commercial competitiveness globally. This Executive Order represents the next step, moving from general economic diplomacy to a targeted program specifically for the AI sector.

Why Now? The Political Calculus:

  • Technological Cold War: The intensifying U.S.-China rivalry is no longer just economic but ideological. The competition is over who will build and govern the world's digital infrastructure, making the export of technology a key strategic battleground.
  • Closing the Gap: U.S. lawmakers have expressed concerns that America's lead over China in AI is narrowing rapidly. Events like the development of competitive Chinese AI models have created a sense of urgency in Washington.
  • Economic and National Security: The White House views AI dominance as "critically important for our national economic security." The fear is that if foreign-made, and potentially adversarial, AI systems become the global standard, it could create massive security vulnerabilities and put the U.S. at a long-term disadvantage.

Your Real-World Impact

The Direct Answer: This directly affects the U.S. technology industry and its employees, but will have indirect, long-term effects on most Americans by shaping the global technological landscape and U.S. economic competitiveness.

What Could Change for You:

Potential Benefits:

  • Job Creation: By providing federal support for major international tech deals, the order could stimulate growth and create high-paying jobs in the U.S. AI and semiconductor industries.
  • Enhanced National Security: Promoting the use of U.S. and allied AI systems globally could prevent the widespread adoption of technologies built by adversaries, which might otherwise pose cybersecurity or espionage risks.
  • Global Tech Standards: If successful, this policy could ensure that the AI tools used globally are built with principles like free speech and data privacy in mind, reflecting American values.

Possible Disruptions or Costs:

Short-term (1-3 years):

  • Taxpayer Risk: The use of federal financing tools like loan guarantees means that if a supported company or project fails, U.S. taxpayers could bear the financial loss.

Long-term:

  • Market Distortion: Government intervention to pick "priority" export packages could be seen as interfering with free market competition, potentially favoring larger, more established companies over smaller innovators.
  • Increased Geopolitical Tension: An aggressive push to export U.S. technology could escalate the "tech cold war," leading to retaliatory measures from competing nations and further fragmenting the global technology ecosystem.

Who's Most Affected:

Primary Groups: U.S. technology companies (from chip manufacturers to AI software firms), their employees, and investors.
Secondary Groups: Allied nations and their technology sectors, which will be the target markets for these AI packages. U.S. small businesses in the AI supply chain may also see new investment opportunities.
Regional Impact: Tech hubs like Silicon Valley, Austin, and other centers of AI and semiconductor research and manufacturing will likely see the most direct economic impact.

Bottom Line: This executive order aims to use federal resources to help American tech companies win the global AI race, which could boost parts of the U.S. economy while deepening the technological competition with China.

Where the Parties Stand

Republican Position: "Innovation Through Market Freedom"

Core Stance: Republicans generally support the goal of U.S. technological dominance but often favor a deregulatory approach to achieve it.

Their Arguments:

  • ✓ Support for strengthening the domestic semiconductor industry and taking a firm stance against China.
  • ✓ Emphasis on promoting U.S. exports and ensuring American technology sets global standards.
  • ⚠️ Concerns that excessive government intervention or picking "winners and losers" could stifle free-market innovation.
  • ✗ Opposition to regulations seen as burdensome, such as those that might dictate the "values" or "ideology" of AI models, preferring a focus on core performance and security.

Legislative Strategy: Generally aligned with promoting U.S. tech exports but may scrutinize the specific financing mechanisms for potential market distortions. Likely to advocate for deregulation and a focus on competition as the primary drivers of innovation.

Democratic Position: "Innovation with Guardrails"

Core Stance: Democrats support investing in U.S. technology and competing with China but emphasize the need for ethical guardrails and regulations to protect against misuse.

Their Arguments:

  • ✓ Strong support for government-led initiatives to bolster U.S. competitiveness and create jobs in strategic sectors.
  • ✓ Belief in acting to ensure AI serves the public interest and does not trample on civil rights or privacy.
  • ⚠️ Concerns that technology is exported and deployed responsibly, ensuring it is not used for human rights abuses by partner countries.
  • ✗ Opposition to an unchecked, purely market-driven approach, arguing for the necessity of federal oversight to manage the risks of powerful new technologies.

Legislative Strategy: Supportive of the program's goals but likely to push for strong oversight to ensure accountability, transparency, and the inclusion of ethical considerations in the selection and deployment of AI export packages.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The President is acting under their vested authority as head of the Executive Branch and under specific laws passed by Congress. The order cites Section 301 of Title 3 of the U.S. Code, which grants the President broad authority to manage the operations of the executive branch. It also relies on authorities granted in the Championing American Business Through Diplomacy Act of 2019 (CABDA).

U.S. Constitution, Article II, Section 1: "The executive Power shall be vested in a President of the United States of America."
U.S. Constitution, Article II, Section 3: "[The President] shall take Care that the Laws be faithfully executed..."

Constitutional Implications:

[Executive Power]: This order is a standard exercise of the President's authority to direct the actions and priorities of executive departments like Commerce and State to implement existing laws and policies.
[Precedent]: Presidents have long used executive orders to establish programs and coordinate inter-agency efforts to promote U.S. economic and national security interests. Mobilizing existing financial tools in support of a policy goal is a well-established practice.
[Federalism]: The order operates entirely at the federal level, dealing with foreign policy and international trade, and does not overstep into powers reserved for the states.

Potential Legal Challenges:

It is highly unlikely that this Executive Order will face significant legal challenges on constitutional grounds. The actions mandated fall squarely within the President's executive and foreign policy authority. Any legal disputes would more likely arise from the implementation of the program—for instance, if a company alleges it was unfairly excluded from consideration or if the financial support mechanisms are seen as violating specific statutory limitations.

Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Contact the White House: Use the White House contact form to express your support for Executive Order 14320 and the "American AI Exports Program."
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I support the administration's efforts to promote the export of American AI technology through E.O. 14320. I urge [Rep./Sen. Name] to support its full implementation and funding."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact the leadership of the House Foreign Affairs Committee and Senate Foreign Relations Committee to encourage robust oversight and support for the program.
  • Join an Organization: Look for advocacy groups focused on U.S. technological leadership and national security, such as the Center for a New American Security (CNAS) or the Special Competitive Studies Project (SCSP).

TO OPPOSE THIS BILL

5-Minute Actions:

  • Contact the White House: Use the White House contact form to express your concerns about Executive Order 14320, such as the potential for market distortion or taxpayer risk.
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I am concerned about E.O. 14320. I urge [Rep./Sen. Name] to conduct strict oversight to ensure it does not waste taxpayer money or create unfair market advantages."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper outlining concerns that the government should not be picking winners and losers in the tech industry or that the policy could escalate geopolitical tensions.
  • Join an Organization: Groups that advocate for free-market principles or are skeptical of government intervention in the economy, such as the Cato Institute or the Mercatus Center, may offer critical perspectives.