Is This an AI Shakeout… Or the Crash?

Washington has treated AI like a panel discussion topic for the better part of a decade.

Politicians have found it interesting, but more or less relegated to Silicon Valley. We’ve seen task forces, hearings, and long-winded reports bringing up “frameworks” and “guardrails.”

Now Washington has radically changed its tone. 

Yet, the White House didn’t announce another study, it gave direct marching orders for its agencies to embrace AI as a core operating system, not just an outlandish experiment. 

Now we know what President Trump wants — to build models, centralize data, and deploy AI agents… and he wants AI adoption to accelerate. 

At least, that was the gist behind his latest announcement regarding The Genesis Mission. 

Didn’t catch this announcement out of the White House towards the end of November? 

Don’t worry, I’d be surprised if you did. Truth is, most investors have been a bit distracted by President Trump’s other actions lately. 

The Genesis Mission directs the federal government to turn decades of publicly funded scientific data — energy research, materials science, climate models, genomics — into unified AI platforms capable of accelerating discovery at national-lab speed.

We’re not talking about something that’ll take decades to come to fruition. 

This is NOW.

President Trump isn’t looking to regulate AI technology, he’s looking to mobilize it. 

And his AI ambitions didn’t stop at software, either. 

More recently, the Trump administration launched a new federal “Tech Force,” designed to pull roughly a thousand technologists directly from the private sector into government roles, with backing from major technology companies. 

His goal isn’t mere optics. This execution is expected to modernize systems that still run on 20th-century code and wiring AI technology into the machinery of government itself.

Look, Washington doesn’t move like this unless it believes the cost of hesitation is greater than the cost of disruption — and that’s the part the market keeps missing.

Folks, this is how the AI boom graduates into infrastructure.

Why the AI Boom Isn’t Popping — It’s Growing Up

You probably know as well as I do that if AI were in a real bubble, the story would be simpler.

We would see spending freeze, and projects would start being cancelled left and right. Of course, we’d also witness the cogs on Capital Hill start turning as Congress holds hearings over what went wrong. 

Instead, we’re watching spending grow and shovels start digging ground on new infrastructure. 

That’s on top of Trump’s latest marching orders to accelerate AI adoption, too. 

Every major technology cycle follows the same arc: First comes wonderment, followed by excess, and the uncomfortable middle phase where the technology stops being magical and starts being operational. 

That’s where AI is now.

Over the years, AI players have moved from cheap demos and viral breakthroughs to billions of dollars being deployed for new data centers, more power capacity, model training, security layers, integration costs… you name it!

As always, profitability lags adoption by a good margin. 

Long ago, railroads lost money before they rewired commerce.

Electrification required massive upfront investment before factories reaped the gains.

Even the internet burned capital throughout the 1990s before it became the backbone of every facet of our society.

AI is following that script almost too perfectly.

However, what’s different this time is who’s underwriting the transition. 

President Trump doesn’t want the U.S. to remain as a passive regulator or distant customer. 

And that matters because government demand isn’t trendy, it’s incredibly durable. 

The last thing federal agencies want to do is chase fads, especially if it means standardizing systems and committing a veritable fortune to investment dollars to lock everything in place. 

When AI becomes embedded in energy modeling, materials discovery, defense logistics, and scientific research, it stops behaving like a speculative trade and starts behaving like infrastructure.

And right now, AI is grinding into the real economy.

When the Next Phase of the AI Boom Pays Off for Investors

The most dangerous assumption investors can make right now is that the AI story is over because it’s no longer exciting (spoiler: It is!)

That’s exactly when it starts getting profitable.

But the next phase of AI won’t look like a viral app or a flashy product launch, it’ll look like plumbing for the economy: systems that run quietly in the background, or models embedded in workflows. 

And this is where government adoption becomes decisive.

You see, when Washington forces AI into federal agencies, it does two things at once.

First, it’ll ignite guaranteed demand and set technical standards that ripple outward into the private sector; contractors, suppliers, and partners all align around those systems.

Still, the early winners of this phase aren’t necessarily the companies with the best chatbots. They’ll be the ones enabling compute, power, data movement, security, and automation at scale. 

You know, the boring stuff that is so essential to the AI boom. 

And history has been rather clear on this point too… 

After all, the fortunes of the internet era weren’t made by early websites, but rather by the companies that built the infrastructure everything else ran on.

AI is reaching that same inflection.

Bubble? Not yet.

And for investors paying attention, this is usually the moment when the real opportunities stop shouting and start compounding.

Let me show you exactly how they’re doing it.