President Trump signed a narrowed executive order on artificial intelligence and cybersecurity Tuesday, sidestepping tougher regulatory proposals that could have constrained the rapidly expanding sector.
The order represents a deliberate scaling back of stricter requirements. More than a week earlier, Trump had canceled the release of a different version, citing concerns that it would damage American competitiveness in the AI race. The latest version signals the administration's preference for a lighter regulatory touch that prioritizes speed over restrictions.
The executive order requires national security agencies to strengthen their cybersecurity capabilities and establish a "cybersecurity clearinghouse." Within 60 days, the Treasury Department, National Security Agency, Cybersecurity and Infrastructure Security Agency, National Institute of Standards and Technology, and White House officials must develop a classified system to assess advanced AI models' cybersecurity abilities and determine which models qualify as "covered frontier models."
The language explicitly prohibits mandatory government licensing, preclearance, or permitting requirements for developing or releasing new AI models. That protection reflects the significant influence of David Sacks, the former White House AI czar now serving as an outside adviser, who championed industry-friendly provisions during negotiations.
Sacks and National Economic Council deputy director Ryan Baasch pushed hard for language blocking government mandates on licensing and approvals. Their efforts paid off in other ways as well. The final order includes a shorter 30-day window for pre-deployment testing rather than a longer timeline some had advocated, and it features a voluntary framework instead of mandatory compliance mechanisms. The order also limits its scope to advanced AI models, narrowing what would otherwise be broader requirements.
Behind closed doors, discussions accelerated as the administration moved toward its final approach. White House staff, Sacks, and Trump met Monday to hammer out details. Tech industry sources indicated negotiations were still ongoing as late as Tuesday morning before the signing.
The executive order acknowledges that advanced AI capabilities strengthen national security while introducing new risks. The document states that the administration will "continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country."
Sacks has retained considerable sway despite operating from outside the formal White House structure. His fingerprints on this order are clear, from the prohibition on mandatory licensing to the voluntary assessment framework. Even Trump's earlier decision to scrap the stricter version involved Sacks' input, though the president himself expressed reservations about regulatory constraints.
Author James Rodriguez: "This order reads like a win for tech industry lobbying, dressed up as a national security measure."
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