President Donald Trump halted a draft artificial intelligence policy order two days ago, citing concerns it would "inhibited" the AI industry and compromise U.S. competitiveness, a move that appears to prioritize the interests of powerful tech corporations over emerging national security imperatives.
Trump stated Friday morning that he had "many" specific concerns about the draft executive order, believing it "inhibited" the AI industry and could have harmed U.S. competitiveness with China. He emphasized his desire for the industry to "continue to win," asserting that the U.S. is "leading by a lot over China and everybody else."
The proposed policy aimed to establish a voluntary oversight system, allowing developers of advanced AI models, such as Mythos, to submit their products for review by federal agencies up to 90 days before public release.
Individuals familiar with the discussions indicated that a primary concern was the potential for these reviews to slow the rapidly advancing industry, alongside fears that the voluntary vetting process could eventually become mandatory.
Elite Interests Prevail
Former AI czar David Sacks emerged as one of the most vocal opponents of the executive order, according to a senior White House official and two other informed sources. Sacks argued that the proposed reviews would impede the industry and hinder the United States' capacity to compete with China.
Sacks conveyed his arguments directly to the President in the hours preceding Thursday’s scheduled signing ceremony, with one White House official describing his efforts as "truly David on a mission." Some industry leaders reportedly shared Sacks' opposition to the order.
One tech industry lobbyist suggested the policy was not "dead" but expected an "effort to make some changes and get some sort of a framework in place," particularly to address "cyber issues." Another industry representative characterized the process as "a mess," acknowledging that the executive order might be "pulled altogether."
Despite the significant industry influence, some top tech leaders denied direct intervention, with Elon Musk posting on X, "I still don’t know what was in that EO and the President only spoke to me after declining to sign." Meta CEO Mark Zuckerberg’s company spokesperson, Andy Stone, stated, "Mark didn’t speak to the president until after the event had already been canceled."
National Security Concerns Downplayed
National Cyber Director Sean Cairncross, who has led policy discussions on advanced cyber models, was not informed of the postponement until after President Trump’s decision, according to a White House official who stated, "Sean isn’t the problem." Treasury Secretary Scott Bessent, another lead administration official on the issue, also received no prior notification.
Senior administration officials, including Treasury Secretary Bessent and National Economic Council Director Kevin Hassett, have consistently stressed the critical need for both companies and government agencies to fortify cyber defenses against advanced AI models. These models possess the capability to identify security vulnerabilities at speeds far exceeding human capacity.
While tech companies like Anthropic and OpenAI have developed advanced AI models, some not yet publicly released, industry representatives stated that companies were "pretty much OK" with the executive order, despite "lingering questions about which agencies would oversee the processes." This same representative added, "It’s chaos, but for us, we still feel that we need to do something on cyber."
The Cost of Unchecked Power
White House officials and industry representatives anticipate that some form of policy will eventually emerge from the Trump administration, but the executive order is now slated to return to the "drawing board" for rework. The outcome remains uncertain, with the potential for the order to be "pulled altogether."