Elon Musk, a maverick in the tech world, has once again made headlines—this time in connection with the U.S. presidential election. The New York Times called Elon Musk the “First Buddy” for his backing of Donald Trump. Now that Trump will return to the White House, Musk is set to lead the newly established “Department of Government Efficiency (DOGE),” tasked with identifying budget reduction strategies. A policy analyst at the Americans for Responsible Innovation (ARI) speculates that Musk may leverage AI to "dismantle government bureaucracy". In fact, ARI has publicly called for Trump to appoint Musk as his AI adviser. Despite its nonprofit status, ARI has deep ties to government, with many of its key members having served in public office. The organization maintains that Musk’s expertise would make him an invaluable people in navigating the complexities of AI technology.

In 2023, Musk founded his own AI company, xAI, and launched its generative AI model, TruthGPT. This year, xAI is expected to finalize $6 billion in funding, raising its valuation to $50 billion. As the race in generative AI intensifies, Musk’s rivalry with OpenAI has reached new heights. Since August, Musk has accused OpenAI and Microsoft of colluding to monopolize the generative AI (AIGC) market, alleging unfair practices designed to edge out competitors. While the legal battle between the two sides is ongoing, the outcome remains uncertain.

Despite past clashes with Trump over environmental policies during his previous administration, Musk has become one of Trump’s staunchest supporters. As a leading figure in AI, social media, and electric vehicles, Musk’s support could signal a slight change in Trump’s approach to emerging industries. Regardless of competition among U.S. AI companies, the rapid growth of AI in the U.S. and globally remains an unstoppable trend.

(Source: Morse Watchmans)

The rise of AI is driving advancements in some relative industries, particularly in data centers. The construction of data centers is booming to keep pace with the increasing demands of AI technologies. However, this rapid expansion poses significant challenges for another critical industry: transformers. Andreas Schellenberg, CEO of Hitachi Energy, the world’s largest transformer manufacturer, noted in a recent interview that the demand for transformers—essential for powering data centers—is booming. According to a Bain & Company forecast, the global AI market is expected to reach $990 billion by 2027, with overall AI-related hardware and services growing at an annual rate of 40% to 55%. As a result, the supply shortage in the transformer industry could persist.

In response to this surging demand, leading transformer manufacturers such as ABB, Schneider Electric, and CEEG are ramping up production while maintaining high product standards. As data center development accelerates, modernizing power infrastructure will become critical to supporting emerging industries. The focus on transformers and power supply is not only vital for technological progress but also essential for sustaining AI innovation and application. For transformer manufacturers, this era of high demand presents both challenges and opportunities.

The broader growth of AI and its ripple effects across industries highlights the transformative potential of technology. From government efficiency to infrastructure modernization, AI is poised to reshape economies and industries worldwide. Every industry needs to prepare for this change.