Trump Admin Postpones AI Order: Cites Overregulation Concerns

Key Takeaways

• US President Trump postponed signing an executive order that would give the government more oversight of the AI industry.
• The President felt that signing the bill would slow down the US in the AI race against China.
• “I really thought that could have been a blocker, and I want to make sure it’s not. I don’t want to do anything that will get in the way of that lead.”

US President Donald Trump postponed signing an executive order on Thursday that would give the government more oversight of the AI industry. Just hours before he was expected to sign the order, Trump told reporters in the Oval Office that he didn’t want to take any action that would slow down the U.S. in the AI race, and he felt signing the AI regulation order would do so.

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Trump on AI: US Can’t Lose Race to China

Specifically, Trump told reporters that the existing order would have asked AI companies to preview models with the federal government. Such a move would set back the U.S. in its competition with China, which AI analysts say the U.S. is winning, he added. “I really thought that could have been a blocker, and I want to make sure it’s not,” he said. “I don’t want to do anything that will get in the way of that lead.” This week, the US President already signed one executive order directing the Fed to review giving Coinbase, Ripple, and Circle direct access to US payment rails without relying on banks

The US Government, specifically The White House, has been split on the topic of AI regulation for some time now. It is clear that the goal is to get ahead of China in that front. The US Government is working to be ahead of any potential cyberattacks or AI weapon developments, Trump has said. However, Trump’s decision to postpone signing this bill reveals that not all boxes have been checked in the President’s eyes. The White House did tell tech company representatives earlier in the day that the signing would be rescheduled.

The postponed executive order would have asked companies to voluntarily preview advanced models with the government. It would have asked national-security and cyber officials to work with agency heads and top tech companies to address software vulnerabilities identified by models including Anthropic’s Mythos.

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Is Trump Administration’s View on AI Changing Post-China Visit?

Despite the postponement of the AI order, Trump and his admin are still adamant on keeping the US ahead in the AI sector race, versus China. Earlier today, the Trump administration agreed to invest hundreds of millions into the quantum computing sector. The investment poured into Intel, Rigetti, and more quantum companies. The Quantum industry is closely tied to the AI sector, meaning the administration remains keen on coming to a final decision on the AI bill.

China is arguably the United States’ biggest rival in AI, something Trump wanted to get ahead of during his visit. Nvidia (NVDA), the biggest AI company in the US, sent CEO Jensen Huang on the trip with Trump, with the firm’s H200 chips in the spotlight. The chips ended up being banned in China, however, despite being approved for sale by the US. Therefore, Trump and the USA are keen on ensuring that the decision doesn’t diminish their AI growth on home soil with the loss in potential revenue.

Furthermore rapid pace of AI development has challenged government officials. There is now increased pressure on Congress to pass legislation for the AI sector. Trump has proposed a framework that the administration says includes adequate oversight of companies and protection for consumers. However, many Democrats and Republicans say the proposal isn’t robust enough to become law. Therefore, more work will likely be done on the AI bill in the coming weeks/months.

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