Watchdog Denounces Trump AI Order Seen as Giveaway to Big Tech Billionaire Buddies Like David Sacks

President Donald Trump is drawing swift criticism after announcing he would be signing an executive order aimed at clamping down on state governments' powers to regulate the artificial intelligence industry.

In a Monday morning Truth Social post, Trump said that the order was needed to prevent a fragmented regulatory landscape for AI companies.

"We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS," the president wrote. "THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY! I will be doing a ONE RULE Executive Order this week. You can’t expect a company to get 50 Approvals every time they want to do something."

Although specifics on the Trump AI executive order are not yet known, a draft order that has been circulating in recent weeks would instruct the US Department of Justice to file lawsuits against states that pass AI-related regulations with the ultimate goal of overturning them.

Emily Peterson-Cassin, policy director at watchdog Demand Progress, slammed Trump over the looming AI order, which she said was a giveaway to big tech industry billionaire backers such as David Sacks, a major Trump donor who currently serves as the administration's czar on AI and cryptocurrency.

"David Sacks and Big Tech want free rein to use our children as lab rats for AI experiments and President Trump keeps trying to give it to them," she said. "Right now, state laws are our best defense against AI chatbots that have sexual conversations with kids and even encourage them to harm themselves, deepfake revenge porn, and half-baked algorithms that make decisions about our employment and health care."

Peterson-Cassin went on to say that blocking state-level regulations of AI "only makes sense if the president’s goal is to please the Big Tech elites who helped pay for his campaign, his inauguration and his ballroom."

Rep. Pramila Jayapal (D-Wash.) also accused Trump of selling out Americans to do the bidding of Silicon Valley oligarchs.

"This is a direct ask from Big Tech lobbyists (who also donated millions to Trump’s campaign and ballroom) who only care about their own profits, not our safety," Jayapal wrote in a social media post. "States must be able to regulate AI to protect Americans."

Some critics of the Trump AI order questioned whether it had any legal weight behind it. Travis Hall, the director for state engagement at the Center for Democracy and Technology, told the New York Times that Trump's order should not hinder state governments from passing and enforcing AI industry regulations going forward.

“The president cannot pre-empt state laws through an executive order, full stop,” Hall argued. “Pre-emption is a question for Congress, which they have considered and rejected, and should continue to reject.”

Matthew Stoller, an antitrust advocate and researcher at the American Economic Liberties Project, also expressed doubt that Trump's order would be effective at blocking state AI regulations.

"Trump can issue an executive order mandating it rain today, it doesn't really matter though," said Stoller.

Rep. Ted Lieu (D-Calif.) predicted the Trump order would be repeatedly struck down in courts.

"Trump’s one rule executive order on AI will fail," Lieu posted on social media. "Executive orders cannot create law. Only Congress can do so. That’s why Trump tried twice (and failed) to put AI preemption into law. Courts will rule against the EO because it will largely be based on a bill that failed."