Trump Puts Planned AI Order on Hold Amid Debate Over US Tech Strategy

The White House had been preparing for Trump to sign the measure during an afternoon event with executives from major AI companies. Instead, the administration paused the effort after internal discussions and concerns raised by figures in the technology industry, according to Reuters.

“I think it gets in the way of, you know, we’re leading China, we’re leading everybody, and I don’t want to do anything that’s going to get in the way of that lead,” Trump told reporters in the Oval Office.

The decision followed reports from several U.S. media organizations that allies of the president and prominent tech leaders questioned parts of the order. Semafor and The Washington Post reported that Elon Musk, Meta chief executive Mark Zuckerberg and investor David Sacks were among those who had expressed concerns about the proposal.

Musk publicly disputed suggestions that he had pressured the administration to shelve the order. In a post on X, he wrote, “this is false,” adding: “I still don’t know what was in that EO and the president only spoke to me after declining to sign.”

Meta and Craft Ventures, the investment firm founded by Sacks, did not immediately comment on the matter, according to Reuters.

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People familiar with the proposal previously told Reuters that the order was designed to establish a voluntary system in which developers of advanced AI models would coordinate with federal officials before releasing certain technologies to the public. Trump did not identify the provisions that prompted his objections.

The debate reflects broader tensions inside the technology sector over how aggressively the government should regulate artificial intelligence while the United States competes with China for leadership in the field. Critics of stricter oversight argue that additional reviews or compliance requirements could delay product launches and affect company revenues.

Per Reuters, the administration was also considering measures that would expand the federal government’s use of advanced AI systems for cybersecurity purposes. The proposal included plans to strengthen digital defenses across government agencies and critical sectors such as hospitals and financial institutions.

At the same time, concerns over the risks tied to sophisticated AI tools continue to grow. Reuters reported that Anthropic has warned its AI system, Mythos, could make complex cyberattacks more effective, although some cybersecurity specialists said the threat may be overstated.

Trump has largely taken a more accommodating stance toward major technology companies than former President Joe Biden, particularly as artificial intelligence becomes increasingly influential in financial markets and the broader economy. Even so, some supporters of the president have continued to call for stronger safeguards surrounding advanced AI development.

Source: Reuters