Trump, Johnson set to meet tech CEOs over AI on Sept. 29

Tech traders face an asymmetric risk. If the meeting emphasises US AI leadership and rivalry with China, it would mostly maintain current conditions. But any sign of mandatory regulations on advanced AI development would affect a key driver of earnings and valuations.

Companies in AI infrastructure—chipmakers, hyperscalers, and data-centre builders—are most vulnerable, as their investment plans rely on a permissive regulatory environment. Tech shares are already under strain from 10-year Treasury yields exceeding 5.1%, reducing their capacity to handle a regulatory surprise.

The AI meeting coincides with the RBA decision on the same Tuesday, adding to a heavy day for Asian markets.

The AI sector is seeking government oversight, while President Trump has characterised opposition to data centres as a conspiracy. Tuesday's discussions will reveal the administration's direction, and technology investors will be monitoring closely.

Key points:

• President Trump, House Speaker Mike Johnson, and technology CEOs are set to discuss AI on Tuesday, September 29.
• The list of participants, discussion topics, and any planned announcements remain undisclosed.
• A number of prominent AI leaders have recently urged increased government regulation of AI development.
• Trump has pushed back against regulation, describing resistance to data-centre construction as a conspiracy that aids China.
• Johnson advocates a moderate approach and suggested convening industry leaders instead of quickly enacting laws.
• Investment in AI has significantly boosted US corporate profits, making technology stocks vulnerable to regulatory changes.

Axios reported, citing an unnamed source, that President Donald Trump, House Speaker Mike Johnson, and several tech CEOs will gather on Tuesday, September 29, to discuss artificial intelligence. The meeting takes place amid increasing calls for Washington to impose regulations on firms developing the most sophisticated AI systems.

Few specifics have been released. Which executives will participate, the agenda, and whether a policy statement is forthcoming remain unknown. However, the meeting had been anticipated for a while. Earlier this month, Johnson stated that he and the president intended to gather AI leaders, and there was discussion about scheduling the event around Chinese President Xi Jinping's visit to Washington this week.

The context features an unusual divide. Several top industry figures—such as OpenAI's Sam Altman, Anthropic's Dario Amodei, and xAI's Elon Musk—have recently demanded more government supervision of AI progress, cautioning about grave dangers as the technology evolves. Trump has strongly taken the opposite stance. He has labelled AI and data centres as the most significant economic development driver ever and claimed that objections to constructing data centres are a conspiracy that favours China.

Johnson occupies a middle ground. He has advocated for a balanced strategy and cautioned against lawmakers' inclination to stifle new technology with excessive regulations. He proposed that a meeting between the president and industry executives would be a preferable initial move rather than hurriedly passing legislation. Some legislators and critics contend that this approach is insufficient, and Democrats have been conducting their own briefings on the subject.

For financial markets, the meeting comes at a delicate time. Expenditure on AI has been a primary contributor to US corporate profits, and investors have relied on this narrative to support lofty valuations in major tech shares. Any indication that the US government is progressing toward mandatory regulations on the development or deployment of advanced AI models could cast doubt on the speed of such investment.

Based on Trump's position, the meeting will probably emphasise US AI leadership and rivalry with China instead of introducing fresh constraints. However, because the industry itself is requesting oversight, the divergence between the White House and the firms it aims to support will be the key focus when the executives gather on Tuesday.