The Trump Administration Is at War With Itself Over AI Regulation

The Trump administration is navigating a tumultuous internal debate as officials grapple with the possibility of reviving an executive order on AI regulation that President Donald Trump suddenly rescinded last month. According to multiple sources familiar with the matter, the discussions have been chaotic, leaving key Silicon Valley players and administration officials uncertain about the future of AI regulation. On May 21, Trump called off a planned signing ceremony for the order just hours before it was set to take place, citing concerns that it could stifle domestic competition and undermine the US advantage over China in the AI race.

The proposed executive order had sparked intense debate, particularly over a provision that would have created a voluntary framework for AI labs like OpenAI, Anthropic, and Google to provide the White House with early access to AI models before their public release. The push for regulation reflects a growing recognition within the White House that AI poses a significant national security concern, driven in part by the capabilities of advanced AI models like Anthropic's Mythos and OpenAI's GPT-5.5. These models have demonstrated exceptional proficiency in identifying vulnerabilities in legacy software systems.

This shift in perspective marks a departure from the administration's initial stance, which had eschewed attempts to regulate AI. Despite the setback, some AI executives and aides remain hopeful that a revised executive order could be introduced, potentially incorporating some of the less contentious provisions. The fate of the order now hinges on the ability of top White House officials to reconcile competing interests.

White House chief of staff Susie Wiles has taken the lead in pushing for the executive order's revival, backed by Treasury Secretary Scott Bessent and National Cyber Director Sean Cairncross. Bessent has emerged as a key player in AI policy, meeting with Anthropic CEO Dario Amodei and other AI executives to chart a path forward. He is also expected to play a leading role in negotiating cross-border AI regulation with China.

However, Trump's former AI czar, David Sacks, stands in opposition to Wiles, having reportedly persuaded Trump to cancel the signing by expressing concerns that the order would be too burdensome. In a post on X last week, Sacks wrote, "President Trump understands that unnecessary regulation is the biggest threat to innovation in America. Winning the AI race means not only beating China but also clearing bureaucratic hurdles thrown up by state legislatures and woke politicians in DC." Ultimately, the biggest hurdle to reviving the executive order may be Trump himself.

As one administration official noted, "Resolving the infighting only matters if it gets Trump to yes." In response, White House spokesperson Liz Huston stated that the administration is working to strike a balance on AI regulation, saying, "The President's team is united in executing his bold agenda and maintaining this critical balance."