Bottom line: Trump postponed an AI regulation after intervention by David Sacks, who argued that voluntary federal model testing would stifle innovation and enlarge China’s advantage. Several industry representatives shared the criticism, although OpenAI had supported the initiative.
President Donald Trump has postponed the long-awaited artificial intelligence regulation on short notice after his former AI policy advisor David Sacks raised concerns of the tech industry. The venture capitalist argued that voluntary federal reviews of AI models would brake innovation and could disadvantage the US in competition with China.
The executive order planned by Trump would have established a voluntary control system in which developers of advanced AI models would have had to have their products reviewed by federal agencies before release. The measure was intended to address risks that systems like those from Anthropic could fall into the wrong hands and trigger cyberattacks.
However, in a conversation with Trump, Sacks argued that companies are already cooperating and that federal reviews would slow down technological progress. The Silicon Valley investor also feared that a voluntary system could later become mandatory.
Trump publicly justified the postponement by saying that he “didn’t like certain aspects” and that the measure could harm the US lead in AI development. Several tech executives had been invited to the planned signing ceremony.
OpenAI, by contrast, had expressed support, emphasizing that safe innovation is possible in cooperation with the government. According to White House staff, Sacks had previously shaped the regulation and was considered satisfied with it – until he expressed concerns on Wednesday evening.