Distraction AI Policies Versus True Government AI Remodel

AI founder working with DOD makes case for policies that cut the red tape in the fight to win the AI Cold War

SAN FRANCISCO, March 11, 2025 /PRNewswire/ -- The U.S. wants more government efficiency, something only possible if we stay competitive in the AI Cold War. While leaders push semiconductor tariffs and outdated export controls, U.S. adversaries are deploying AI at scale, integrating it into military, economy, and critical infrastructure. Yurts—an AI company working directly with the Department of Defense—argues that if the U.S. doesn't stop focusing on performative policies and start investing in AI-driven modernization, it will fall behind permanently.

"The U.S. government is drowning in red tape and outdated IT systems," says Ben Van Roo, CEO and co-founder of Yurts. "Tariffs and export controls alone are not sufficient to counter China. The only way to win is by building faster, integrating AI into government operations, and out-innovating our competitors."

Insights for Efficiency

• While Washington argues over outdated policy, China embeds AI into every facet of its military and government. The U.S. needs to act now or risk long-term vulnerability.
• Van Roo explains "We're pouring money into semiconductor fabs, but if we don't address the regulatory bottlenecks slowing AI adoption, it won't matter. AI leadership isn't just about building chips—it's about how we use them. If we keep focusing on slowing others down instead of speeding ourselves up, we'll lose."

Why Export Controls are a Losing Battle

• America's export controls are based on wishful thinking. "We're fighting yesterday's war while tomorrow's battlefield takes shape," says Van Roo. "The release of Manus AI, while a very early stage product, is a play in the AI Cold War that's forcing the U.S. to act, not sit back and watch."
• Instead of relying on ineffective semiconductor bans, the U.S. should be focused on supercharging domestic semiconductor production, cutting the bureaucratic roadblocks that delay AI adoption, reforming immigration policies to attract global talent, and creating tax incentives for AI R&D and commercialization.

GPUs and Tariffs

• Tariffs would have to be exponentially higher than Trump's proposed 25% to truly affect those committed to investing in GPUs. "Companies are already paying tens of thousands per GPU," says Van Roo. "A 25% tariff is a drop in the bucket, not a real solution."
• The global black market for GPUs is thriving. Recent busts, like the GPU smuggling ring in Singapore, prove that whoever wants the hardware will find a way to get it. "We've seen time and time again that where there's demand, supply finds a way. Tariffs and bans won't stop adversaries from getting the tech they need. Our only chance is to out-build and out-innovate them," says Van Roo.

Ben Van Roo Available for Interviews
Ben Van Roo, co-founder and CEO of Yurts, is available to discuss what policies are needed to win the AI Cold War and promote more efficiency, including:

• Moving away from a reliance on export controls
• Building an infrastructure that promotes modernization to keep the U.S. competitive
• Reskilling our workforce for jobs that will look different because of AI

About Yurts
Yurts delivers secure, production-ready AI solutions designed to transform mission-critical workflows in defense, government, and enterprise environments. Founded by Ben Van Roo, Jason Schnitzer, and Guruprasad Raghavan, Yurts originated from a strategic collaboration with the Department of Defense. Its AI integration platform connects models to high-security systems of record, enabling organizations to unlock operational insights, enhance decision-making, and achieve unprecedented productivity. Learn more at www.yurts.ai.

Media Contact:
Carly Bourne
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SOURCE Yurts AI