Trump Kills AI Safety Order as Companies Write Their Own Rules
President Trump canceled a planned executive order Thursday that would have required frontier AI companies to submit their models for federal security reviews before public release. The White House offered competing explanations: Trump said he opposed certain aspects and didn't want to "get in the way" of America's AI competition with China, while others attributed the cancellation to tech executives unable to reach Washington in time for the announcement.
The decision reflects the Trump administration's broader stance: minimal regulation of AI companies, except those it views as adversaries. The administration previously attempted to impose a 10-year moratorium on state AI regulation-an effort that has repeatedly failed.
Companies Fill the Regulatory Vacuum
Without federal guidance, AI companies are aggressively shaping state policy. OpenAI has launched what its chief global affairs officer Chris Lehane calls "reverse federalism"-passing similar laws across multiple states to create a de facto national framework.
The strategy has already succeeded in California and New York, both of which passed AI safety laws that OpenAI endorsed. OpenAI is now backing an Illinois bill requiring frontier labs to undergo audits, mirroring provisions in the earlier state laws.
If Illinois passes the measure, OpenAI will have essentially dictated foundational policy in three of the country's most populous and influential states. But the company faces competition: Anthropic is simultaneously lobbying in Illinois behind a rival bill.
Money Follows Policy
As AI companies raise capital at escalating valuations, they're redirecting significant portions toward policy influence. Tech companies spent roughly $40 million on lobbying in California alone last year, with spending accelerating this year through contributions to pro-AI super PACs.
The absence of federal governance has created the conditions for this outcome. Without rules set from Washington, companies now write the rules themselves-state by state.
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