Tech bosses rejoiced as President Donald Trump signed an executive order to stymie states from enforcing AI regulations — delighting the president’s allies but infuriating critics who say that AI left unchecked could kill jobs and risk people’s safety.
Trump directed the US attorney general to create an “AI litigation task force” to challenge state regulations that could impede a national regulatory standard — a move that critics say is illegal. The president also aims to make state funding contingent on compliance with the order.
Billionaires including David Sacks, the White House AI and crypto czar who pushed the executive order, celebrated its signing and said it would help companies who might otherwise have to navigate a patchwork of state laws.
“Thank you to President Trump for his extraordinary vision and leadership on AI and for looking out for the interests of the entire country, as the Framers of the Constitution intended and as only the President of the United States can do,” gushed Sacks in a Dec. 8 post on X.
“Playing a game with 50 sets of rules isn’t viable. Having to do so would slow down investment,” wrote Chamath Palihapitiya, venture capitalist and Trump ally who co-hosts the All-In podcast with Sacks, on X. The two looked in festive spirits around the signing, with Palihapitiya sharing a Christmas greeting Thursday showing him and Sacks cheesing at the White House.
The executive order was a culmination of months of lobbying by top firms like OpenAI, Nvidia, and Google.
California stands to lose as much as $1.8 billion in federal broadband funding if it enforces AI regulations in conflict with the order, per the LA Times.
Backers of the order argue that lower regulatory burdens will help ensure U.S. development of AI remains competitive with China, and that entrepreneurs will prosper free from pesky state bills.
Sacks, on Fox Business, argued that AI has created a “broad-based boom” boosting plumbers, electricians and other blue-collar workers.
“What we’re actually seeing is a huge boom that’s benefiting construction workers,” Sacks told Fox host Maria Bartiromo.
Others have a much dimmer take, saying the order violates states’ rights and smacks of a giveaway to Trump fans in Silicon Valley.
“This blatantly corrupt and blatantly illegal order is a gift to David Sacks and other MAGA donors at the expense of transparency and public safety,” said California state Sen. Scott Wiener, who authored a bill requiring AI companies to disclose safety incidents.
“If the Trump Administration tries to enforce this ridiculous order, we will see them in court,” Wiener added.
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