Tech leaders erupted in applause when President Donald Trump signed an executive order aimed at keeping states from imposing their own AI rules. The move was hailed by the president’s allies, although critics warned that unchecked AI could put jobs at risk and jeopardise public safety.
The order directs the U.S. Attorney General to set up an “AI litigation task force” that would challenge state regulations seen as obstacles to a unified national framework—a strategy some opponents allege is unlawful. Trump also indicated that federal money could be tied to state compliance with the new directive.
Billionaires such as David Sacks, who helped champion the order and now serves as the White House’s AI and crypto czar, cheered the signing. “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,” Sacks said in a December 8 post on X.
The executive order followed months of pressure from major players in the tech world, including OpenAI, Nvidia and Google. Supporters argue that a single federal standard will keep American AI firms competitive against Chinese rivals and ease the burden on businesses that would otherwise have to navigate a patchwork of state rules. Sacks pointed out on Fox Business that the AI boom has already lifted blue‑collar jobs like plumbers and electricians, noting a “huge boom that’s benefiting construction workers.”
However, opponents see the order as an overreach of federal power. California officials warn that a breach of the order could cost the state up to $1.8 billion in federal broadband funds, according to the LA Times. California state Sen. Scott Wiener blasted the move as “blatantly corrupt and blatantly illegal,” calling it a favour to David Sacks and other MAGA donors at the expense of transparency and public safety. Wiener threatened to take the administration to court if it tries to enforce the order.
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