Trump cancels AI executive order over concerns of slowing U.S. tech innovation

President Donald Trump called off plans to sign a new executive order on artificial intelligence hours before an expected White House ceremony Thursday because he said he was worried the measure could dull America’s edge on AI technology. Trump said he was postponing the Oval Office event with tech industry executives because he did not like what he saw in the order’s text. “We’re leading China, we’re leading everybody, and I don’t want to do anything that’s going to get in the way of that lead,” Trump told reporters. The order would have established a framework for the government to vet the national security risks of the most advanced AI systems before their public release, according to a person familiar with the White House’s deliberations with the tech industry but not authorized to speak about them publicly. The directive was being characterized as a voluntary collaboration with participating U.S.-based tech companies, including Anthropic, OpenAI, and Google, the person said. The push for some kind of government action to review leading AI systems follows growing concern within the banking industry and other institutions about the leaps in AI’s abilities to find cybersecurity vulnerabilities in the world’s software. Treasury Secretary Scott Bessent and outgoing Federal Reserve Chair Jerome Powell convened an urgent meeting with Wall Street CEOs in April, warning them about the cybersecurity risks posed by Anthropic’s AI model, Claude Mythos. The meeting, urgently assembled at the Treasury Department’s headquarters, was intended to ensure that banks were aware of the risks associated with the models, Bessent said at CNBC’s “Invest in America Forum” in Washington in April. “This new Anthropic model is very powerful,” he said. “Some banks are doing a better job in cybersecurity than others, and we want to have the ability to convene them and talk about what is best practices and where they should be heading.” That led some allies of the Republican presi