Trump's AI Order: A Bid to Beat China Amid State Regulation Battle

“We have a big signing right now, and we have a tremendous industry where we’re leading by a lot. It’s the AI — Artificial intelligence,” Trump said at the signing ceremony on Thursday. “We’re leading China. We’re leading everybody by a tremendous amount.”

Trump framed AI as a decisive strategic contest. “There’s only going to be one winner here. It’s probably going to be the US or China,” he said. “And right now, we’re winning by a lot.”

The executive order seeks to steer AI development under a single national framework, limiting the impact of state-level regulations that the administration says could deter investment in data centres, computing infrastructure, and energy systems.

“If they had to get 50 different approvals from 50 different states, you can forget it,” Trump said. “All you need is one hostile actor.”

A senior administration official said the goal is to ensure AI “can operate within a single national framework in this country as opposed to being subject to state-level regulation that could potentially cripple the industry,” adding that AI leadership is tied to “economic growth, job development, national security and technological edge.”

David Sacks, introduced as the administration’s “AI and crypto czar,” warned that states are moving rapidly to legislate on AI. “We have over a thousand bills going through state legislatures right now to regulate AI. Over 100 of them have already passed,” he said, noting that “25 per cent of them are in California, New York, and Illinois.”

Sacks said the administration will work with Congress to “create that federal framework” and push back against “the most onerous and excessive state regulations,” while maintaining safeguards in areas such as child protection.

Speakers at the ceremony also cast AI as a contest of political values. Trump said slowing US AI development would give Beijing a strategic advantage. “Not doing this would be the greatest gift to China… that China has ever received,” he said.

Asked whether he was more concerned about China or the risks posed by artificial intelligence itself, Trump replied, “Both,” pointing to rapid breakthroughs already emerging from the technology.

“You look at the medical and medical research already… We’re way ahead of what we ever thought we’d be just from the infancy of AI.”

The executive orderseeks the administration to take decisive action to ensure that AI can operate within a single national framework in this country as opposed to being subject to state-level regulation that could potentially cripple the industry, he said.

- IANS