U.S. President Donald Trump has urged lawmakers to limit overregulation in the sector. Trump stated that overregulation is a significant hurdle undermining AI growth. He suggested that lawmakers establish a nationwide standard to regulate AI innovation.
U.S. President Donald Trump has called for nationwide standard regulations in the AI sector, citing concerns about overregulation. He complained that the sector is facing a significant hurdle from state regulations that could limit its growth.
Trump explained that investments channeled to AI development are helping the U.S. economy by making it the “HOTTEST” in the world.
Trump says AI state regulation could slow down the sector’s development
Trump wrote on Truth Social that some states are trying to embed DEI ideology to produce what he termed “woke AI” models. He discouraged having 50 state regulatory regimes governing AI development, stating that the variations risk slowing development in the tech sector. Trump mentioned that there exists the possibility of achieving AI developments in a way that protects children and prevents censorship.
He also highlighted that China will overtake the U.S. in the AI race if America over-regulates the sector. Trump advised lawmakers to pass a separate bill and place a provision in the National Defense Authorization Act (NDAA) to address the issues at hand.
Jensen Huang, CEO of Nvidia Corp., also made similar remarks, saying that China boasts streamlined regulations that give Beijing a competitive advantage in the AI race over the United States. He also noted that China has advanced AI technology, with its AI researchers accounting for approximately 50% of the world’s AI researchers.
OpenAI warns that state regulations could bury AI companies
The news comes amid concerns from AI companies based in the U.S. over state regulations of the sector. Cryptopolitan previously reported in mid-March that leading AI companies, such as OpenAI, support federal regulation over state regulation of AI legislation. OpenAI urged the Trump administration to block state AI regulations in exchange for access to its AI model.
OpenAI argued that fragmented regulations at the state level raise serious concerns about the possibility of damaging America’s position as the leading AI hub. OpenAI’s concerns arose at a time when hundreds of AI-related bills were under review across the U.S.
The AI company cautioned that state regulations will hinder both small and large AI corporations, thereby limiting their growth. The company highlighted its concerns in a 15-page policy document released in response to a request from the White House for public feedback on AI policy.
Steve Scalise, House Majority Leader and a Louisiana Republican, said earlier this week that Republican leaders were “looking at” adding the language into the National Defense Authorization Act. The regulation, which sets the Pentagon’s budget and expenditures, often becomes a vehicle for other policy measures. The bill is set to ban state regulation of AI development effectively.
Bloomberg reported that several proposals are currently being discussed, including the exemption of AI companies from state regulation if they agree to federal standards in other areas, such as child safety.
Despite the AI race gaining traction, investors have expressed fears that the AI bubble is about to burst. Global financial markets have fallen sharply in the U.S., Asia, and Europe amid concerns that the surge in valuations of artificial intelligence (AI) companies could be declining rapidly.
Cryptopolitan reported in early November that Tech and AI stocks on Wall Street had their worst week since April as investors slowed down on high‑risk trades. AI companies Palantir and Oracle were among the stocks that were heavily hit. The crypto market also pulled back significantly, sending Bitcoin below $100k for the first time since June.
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Source: https://www.cryptopolitan.com/trump-urges-nationwide-regulate-ai/
