Translation resultSilicon Valley warnings that the United States could fall behind China in the tech race were decisive in President Donald Trump\u2019s last\u2011minute decision to delay signing an executive order that would have required government pre\u2011clearance for AI models before their release. Analysts say the episode signals that U.S. AI governance is increasingly shaped by pro\u2011business, tech\u2011industry interests rather than national\u2011security officials.\u201cCould put us at a disadvantage against China\u201dThe Wall Street Journal reported on June 22 that David Sacks, a close Trump ally and venture investor, phoned the president before the planned signing and warned that the order would slow the AI industry\u2019s development and put the U.S. at a disadvantage against China. Sacks reportedly argued the order would hand a victory to \u201cAI pessimists\u201d who have been pushing for heavy regulation.Trump, who had been cautious about the order, sided with Sacks and abruptly postponed the ceremony. The Washington Post and Politico reported that AI company CEOs had already been invited to the White House; some had flown to Washington and the venue was prepared. Asked why he delayed the signing, Trump said, \u201cWe are ahead of China, and I don\u2019t want to do anything to shake that advantage.\u201d He added that he disliked parts of the order and thought it could become a stumbling block.\u201cPayPal Mafia\u201d Sacks reverses policy through informal channelsSacks, who oversaw AI and cryptocurrency policy early in the administration before leaving his formal role in March, now serves as co\u2011chair of the White House Science and Technology Advisory Committee. He is also a prominent member of the so\u2011called \u201cPayPal Mafia,\u201d the network of entrepreneurs who helped build the online\u2011payments company alongside figures such as Elon Musk.Crucially, Sacks appears to have sidestepped formal policymaking channels. According to the Wall Street Journal and the Washington Post, working\u2011level officials\u2014including the Office of Science and Technology Policy and National Cyber Directorate staff\u2014spent weeks refining the executive\u2011order draft and briefed Sacks. He initially gave a tacit sign of acceptance, but on the morning of the scheduled signing he called the president and reversed his position. Some White House aides believed Trump had already approved the order and reacted strongly to the last\u2011minute intervention.White House AI policy rift surfacesThe shelved order would have required companies to share information with the government and subject high\u2011performance AI models to safety testing before release. As models demonstrate increasing capabilities\u2014ranging from conducting cyberattacks to detecting software vulnerabilities\u2014White House security officials argued for at least minimal verification measures.The key dispute centered on the pre\u2011share window. The draft required companies to share models with the government 90 days before release; industry had pushed for a 14\u2011day window. Politico reported that Sacks warned Trump that, although described as voluntary testing, the measure could function as a de facto licensing regime.Observers say the episode exposed a deeper clash inside the White House: pro\u2011business Silicon Valley interests prioritizing the tech rivalry with China appear to have prevailed over security and cyber officials. Critics warned of consequences. Former White House strategist Steve Bannon cautioned that accelerating AI development too aggressively could produce harmful side effects and ultimately provoke stronger regulation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Trump’s delay in signing an AI regulation order reflects Silicon Valley’s concerns about falling behind China in tech competition.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_thumbnail_url":"https:\/\/cdn-union.tenbizt.com\/contents\/crawler-dev\/thumbnail\/2026\/05\/CP-2023-0094\/thumb-2131d357-f9f7-4c08-976e-09d61642c928.jpg","footnotes":""},"categories":[278093],"tags":[],"class_list":["post-261697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\n