President Donald Trump on Thursday canceled plans to sign a new executive order on artificial intelligence after raising concerns that stricter oversight could weaken America's lead in the global AI race.
"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, according to an Associated Press report.
The proposed order would have created a voluntary framework for companies such as OpenAI, Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) subsidiary Google and Anthropic to share advanced AI models with the government before public release. The AP reported that the debate reflected growing divisions inside the administration over balancing AI safety and cybersecurity risks against innovation and economic competitiveness.
AI Debate
The White House had been preparing the order amid rising concerns over AI-driven cyberattacks and national security risks. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell previously warned Wall Street executives about cybersecurity risks tied to advanced AI systems such as Anthropic's Claude Mythos.
At a White House briefing earlier this week, Vice President JD Vance said the administration wanted to remain "pro-innovation" while also addressing cybersecurity and privacy risks tied to advanced AI systems.
"The president wants us to be pro-innovation. He wants us to win the AI race against all other countries in the world," Vance said, according to the AP report. He added: "We also want to make sure that we're protecting people."
Earlier this month, the administration was considering a framework requiring AI developers to provide early access to advanced models before public deployment. The proposal drew support from some Trump allies pushing for stricter oversight, while investors and tech allies including Marc Andreessen and David Sacks opposed stronger regulation in favor of voluntary cooperation.
AI Wealth
The AI boom has also rapidly reshaped investment flows across the technology sector. Earlier this month, reports showed Eric Trump and Donald Trump Jr. backed a $1 billion investment network focused on AI, crypto and drone companies tied to sectors promoted by the Trump administration.
The administration has increasingly promoted AI infrastructure expansion as a key economic and geopolitical priority while also facing rising pressure from lawmakers, banks and cybersecurity experts calling for stronger safeguards around frontier AI systems.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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