Bloomberg Tech: "Trump Wants Big Tech to Pay for Power"
Date: January 16, 2026
Host: Bloomberg Tech Team
Key Guests: Mike Shepherd (Senior Tech Editor), Martin Norton (Empower Chief Investment Strategist), Natasha Mascarene (Venture Capital Reporter), Christina Curious Ogle (Tech Reporter), Andrew Ferguson (FTC Chairman), Jemeina Alaman (Prematteo Co-CEO)
Episode Overview
This episode explores major policy, market, and innovation stories shaping the technology sector in early 2026. The main focus is President Trump’s unprecedented directive for Big Tech companies to shoulder the burden of surging energy prices tied to data center growth, featuring reactions from industry, investors, and regulators. Other highlights include a US-Taiwan semiconductor deal, the AI-fueled memory bottleneck in tech equities, a surge in funding for coding platform Replit and European defense VC, the rise of humanoid robots, and a deep dive into antitrust and regulatory perspectives from the FTC chairman.
Key Discussion Points and Insights
1. Trump Administration Pushes Big Tech to Pay for Data Center Power
[01:33 - 04:11]
- Policy Overview: The administration, with support from northeastern governors, will direct PJM Interconnection (the largest US grid operator) to hold a 15-year emergency power auction targeting tech giants. This aims to fund up to $15 billion in new power generation to sustain the AI and data center boom.
- Market Impact: Utilities are among the hardest-hit S&P sectors, with names like Constellation and Vistra seeing significant stock declines.
- Industry Reception: Hyperscalers (biggest tech companies) may gain pricing stability but were caught off guard, as PJM was not invited to the White House event. Announcement from Secretaries Doug Burgum and Chris Wright awaited.
“They are giving the tech industry, especially the biggest companies, what they wanted: the ability to pay for some extra power generation with stability, but it’s unprecedented to see 15-year commitments.”
— Mike Shepherd (02:47)
2. US-Taiwan Semiconductor Partnership
[04:11 - 05:33]
- Key Deal Points: The US and Taiwan agree to lower tariffs on key goods (from 20% to 15%) and to co-invest in American semiconductor manufacturing.
- TSMC Expansion: Taiwan Semiconductor Manufacturing Co. is expected to commit to four additional plants in Arizona, raising its total US investment to $100 billion through the 2030s.
“TSMC would commit to building four additional semiconductor manufacturing plants in Arizona...on top of six already planned.”
— Mike Shepherd (04:25)
- Market Response: TSMC’s US-listed shares hit record highs, with Micron running an eight-week streak of gains amid a memory chip bottleneck.
3. The AI-Driven Memory Bottleneck & Investor Sentiment
[06:54 - 10:45]
- Supply Chain Constraints: Soaring demand in the AI cycle is running into “the bottleneck phase,” especially for key memory chips (notably DDR4).
- Permitting & Construction: Despite high demand, energy forecasts have been downgraded—data centers are facing construction, permitting, and supply issues.
- AI “Moment of Doubt”: Since Oct 29, AI equities face malaise—investors look to see if CapEx and revenues continue strong into Q4 earnings.
“We’re in an AI moment of doubt as we speak. Really since October 29...folks worry about circular financing and big spending.”
— Martin Norton (10:45)
4. Big Tech Energy Auctions and Policy Implications
[09:14 - 11:46]
- “Trial Balloon” Era: The White House approach is evolving from speculative to actionable, with a clear dual focus on affordability and supporting the AI sector’s energy appetite.
- Market/Investor Reaction: Some relief for hyperscalers; open question whether the policy supports or hurts their margins.
5. Replit’s Explosive Funding & the Shifting Venture Landscape
[11:46 - 14:55]
- News: Replit is reportedly finalizing a $400M round at a $9B valuation—triple from four months ago.
- Venture Trend: Back-to-back funding rounds and existing investors (like Georgian) leading step-ups reflect how fast AI startup valuations can escalate.
“Back-to-back fundraising is more common than not in AI startups these days…Replit’s a bet on getting non-technical coders to start shipping apps.”
— Natasha Mascarene (12:49)
- Startup Strategy: Replit appeals to ‘non-developers’—a distinct market from enterprise-focused rivals like Cursor and Anthropic.
6. Europe’s Largest Defense VC Fund
[14:55 - 17:49]
- DTCP Fund: Hamburg-based Digital Transformation Capital Partners is raising a $580M fund for European defense tech (largest yet), supported by Porsche and Deutsche Telekom.
- Delays: Private and public reluctance to invest in weapons, slow procurement, and the challenge of selling to “the government as sole customer” have delayed market maturation.
- Broader Mandate: The fund may target civilian-military crossover tech to expand potential returns and reduce controversy.
7. The Humanoid Robot Boom: From Labs to Industry
[20:43 - 25:27]
- Market Size: Barclays forecasts the humanoid robot market will reach $200B by 2035.
- Drivers: Aging populations, rural “job deserts,” and changing worker preferences create unmet demand for repetitive or hazardous labor.
- Current Deployment: A few thousand humanoids already work on factory floors, especially in structured manufacturing jobs.
- Cost Crash: Dramatic reductions in per-unit price from $3M to ~$100,000 in five years; possibility of <$15,000 units soon.
- US vs. China: China is ahead in deployment; US is “catching up.”
“Humanoid robots are no longer confined to research labs. There are a couple thousand already deployed on factory floors.”
— Sierra AI Agent/Barclays (22:58)
8. FTC Chairman Andrew Ferguson: Antitrust, Acquihires, and AI Regulation
Acquihires & Antitrust Enforcement
[27:08 - 36:11]
- FTC’s New Approach: No need for clever structures to circumvent merger review (unlike the Biden era); if the deal is legal, FTC will get out of the way.
- Analyzing Acquihires: Larger “talent deals” now trigger billion-dollar transactions and closer scrutiny under Hart-Scott-Rodino (HSR) rules.
- In AI: Notably common now, with some deals involving “hundreds of engineers” and key IP licensing.
- Enforcement Focus: Ensuring deals don’t sidestep HSR review; no “process as punishment.”
“We’re not going to let process be the punishment establishment anymore. If your deal is legal, I’ll get out of your way…if not, I’ll fight to win in court.”
— Andrew Ferguson (27:08)
Consumer Protection in AI
[35:42 - 37:41]
- “Take It Down Act:” The FTC soon will enforce new rules requiring immediate takedown of nonconsensual, AI-generated sexual imagery; working closely with Homeland Security and hiring dedicated experts.
“If you are violating the Take It Down Act, you are going to hear from us and we will be ready to do it.”
— Andrew Ferguson (36:11)
Biden/Trump Era Policy Shift & Consumer Pricing
[37:41 - 41:37]
- Commission Appointments: Ferguson lauds President Trump’s unconventional pick for the FTC, emphasizing “real world,” job-creation experience.
- Affordability Mission: Emphasis on merger enforcement, especially in health care and housing, and “historic” action against Ticketmaster to lower prices.
- FTC Returns: Billions returned to consumers in past year, despite a budget under $500M.
9. TSMC on US Chip Manufacturing: Speed and Limits
[45:21 - 46:56]
- CFO Statement: TSMC will expand in the US but the "leading edge" R&D/production will stay in Taiwan for now.
- Transfer Challenge: Shifting top-tier technology from Taiwan to the US remains a multi-year process.
10. The Trump Credit Card Rate Cap and Prospects for Disruption
[46:56 - 52:27]
- Policy Shock: President Trump’s call for a 10% cap on credit card rates shook bank stocks; CEOs warn of risks to credit access.
- Industry Structure: 80% of Americans rely on cards; $1.2 trillion in outstanding balances points to a vast, entrenched system.
- Potential Disruption: Could catalyze fintech and direct-to-account payment methods such as “buy now, pay later.” New entrants may leverage technology to fill the gap if banks retreat.
“[This intervention] forces a conversation on the underlying [financial] infrastructure and reshapes it.”
— Jemeina Alaman (47:37)
- AI in Banking: 2025 marked a transition from AI experiments to real deployment, especially in core bank functions such as fraud detection, credit, and back-office operations.
Notable Quotes & Memorable Moments
- “They usually go on 12 month intervals, not 15 year intervals. So this really would provide pricing stability for those buyers.”
— Mike Shepherd, on PJM's auction plan (03:48) - “We are in an AI moment of doubt as we speak...since October 29th we’ve seen this malaise hit AI names.”
— Martin Norton (10:45) - “Now...existing investors marking up their stakes, looking to double down on their big bets and get bigger chunks of those startups...”
— Natasha Mascarene, on AI funding dynamics (14:16) - “Robots here were kind of janky...now they’re turning into a real product.”
— Jan Liphart, Open Mind CEO at CES (20:26) - “We’re trying to figure out...when does an acqui-hire involve the sale of assets or stock in a way that would trigger the [HSR] statute?”
— Andrew Ferguson (30:27) - "Under the Trump administration, you get a fair shake. Your deal may not go through. But if your deal is legal, I will get out of your way very quickly. And if it's not, I'll take you to court and I'll fight to win there."
— Andrew Ferguson (27:08)
Timestamps for Major Segments
- Trump Power Auction/Tech Policy: 01:33 – 04:11
- US-Taiwan Semiconductor Deal: 04:11 – 05:33
- AI Memory Bottleneck, Utilities Reaction: 06:54 – 10:45
- White House Data Center Auction Policy: 09:14 – 11:46
- Replit Funding & AI VC Trends: 11:46 – 14:55
- Europe Defense VC Fund: 14:55 – 17:49
- Humanoid Robot Market: 20:43 – 25:27
- FTC Andrew Ferguson on Acquihires/Antitrust: 27:08 – 36:11
- FTC Consumer & Pricing Policy: 35:42 – 41:37
- TSMC’s US Expansion Plans: 45:21 – 46:56
- Trump Credit Card Rate Cap & Bank Disruption: 46:56 – 52:27
Conclusion
This episode of Bloomberg Tech dissected the collision of policy, finance, and technical innovation in 2026. President Trump’s forceful push for Big Tech to fund energy infrastructure marks a new era of government intervention. The episode also spotlighted the international race for semiconductor supremacy, the challenges of market bottlenecks, rapid venture capital escalation in AI, the potential dawn of humanoid robotics, and evolving regulatory vigilance over M&A and AI-driven consumer harms. The insights from high-profile guests, particularly FTC Chairman Andrew Ferguson, highlighted shifts in enforcement philosophy and market expectations for the world’s fastest moving industry sectors.