AI Power Race Puts State and Tech Giants in Control

Director of National Intelligence Jay Clayton says the U.S. government and private companies must guard against foreign espionage as the race for artificial intelligence dominance speeds up. State security agencies and technology firms now face decisions about systems tied to public services, national defense and global communications.

Who Gets to Set the Rules

“It's something that our private sector companies need to be wary of. We, as a government, need to be wary of,” Clayton told CNBC. He said AI “amplifies” existing cybersecurity risks to interconnected U.S. digital infrastructure. His proposed response came from above: “It's why we're focused on hardening those systems” and using “our commitment to continue to lead to stay ahead of those nefarious actors,” said Clayton, head of a new White House AI task force.

Clayton spoke after the recently revealed case charging Saudi national Abdulrahman Alfozan with allegedly installing a recording device in an OpenAI executive conference room. Alfozan hasn't been charged with espionage; the federal charge concerns alleged interception of oral communications. Federal prosecutors said Alfozan, an OpenAI employee, had booked a one-way plane ticket to Saudi Arabia with his wife and another family member before his arrest.

Clayton said the case “shows the lengths that people will go to try and supplant our leadership in this, or at least stay close to us in this emerging technology.” An ex-CIA official, speaking anonymously about non-public information, told CNBC this week that the case is “probably the tip of the iceberg.” This is a race for leadership, with governments and companies guarding their position in an industry whose systems reach into public life.

Industry Self-Policing, With Government Oversight

Clayton, appointed AI czar earlier this month, said the task force held a “very good” inaugural meeting at the White House on Thursday. It builds on an accord President Donald Trump and several AI leaders signed at the White House last month. Trump called the agreement “morally binding”; it includes industry pledges to police AI risks themselves.

The task force set up three subcommittees: one for reporting and response, one to assess critical infrastructure and work with the private sector, and one for law enforcement and responsibility. A separate item said Clayton and National Cyber Director Sean Cairncross would lead a working group with AI companies that signed the accord to monitor its implementation. Department of Defense Under Secretary Emil Michael would develop a process for leading labs to report breaches or hacks committed by their agents, and lead a working group of labs. Officials didn't specify that group's goal.

OPM Director Scott Kupor would oversee efforts to protect critical infrastructure from AI-enabled harms, while FTC Chair Andrew Ferguson would lead a committee on applying existing laws to AI. The task force also discussed tracking AI's effects on job loss and the economy, assigning that work to the Department of Labor. Those are institutional plans. The source describes no community-led response or mutual-aid effort.

A Global Race, Different Rulebooks

Clayton said the administration intends to stay ahead in the AI race. “The Chinese, the Russians, the Iranians, the North Koreans all have significant technical capability. We need to stay ahead of them.” China said Friday it plans to restrict or ban exports of 40 technologies spanning AI, chips and solar power. A Financial Times headline described a draft of export controls on AI technologies and chips, but the extracted page content offered no further details.

At an International AI Summit in Dublin, European Union officials said no new rules were needed as Europe sought to catch up with the U.S. tech sector. Irish Commissioner and EU justice chief Michael McGrath said, “We are satisfied for now. We have an appropriate system of regulation in place.” Microsoft President and Vice Chair Brad Smith said Europe wants rules “a little lighter in weight” and more supportive of innovation while protecting public safety, while in Washington “you're hearing more voices really point to the need for strong protection of the public.”

Google DeepMind's former chief executive Demis Hassabis warned that rules can fall behind the technology: “If you legislate for something three years ago, it would be out of date today, and actually probably won't even address what the real problems are.” A Google DeepMind spokesperson said Hassabis was emphasizing adaptable rules and governance. The summit heard competing prescriptions from officials and executives, while the White House agreement leaves AI companies pledging to police risks themselves. Governments and industry are assembling the oversight machinery; the plans cast people exposed to these systems as infrastructure users, subjects of risk assessments, and workers whose jobs may change.