Trump Suspends AI Order Over Concerns About Competition With China

US President Donald Trump has suspended a planned executive order on artificial intelligence (AI), saying parts of the proposal could weaken the United States in its technology competition with China.

According to Reuters, Trump was expected to sign the order on Thursday during an event attended by leading AI company executives. However, the decision was cancelled at the last minute.

Speaking to reporters at the Oval Office, Trump said he opposed provisions that might slow the country’s progress in AI development.

“We are ahead of China. Far ahead of everyone else. I do not want to do anything that will hinder that progress,” Trump said.

Reuters reported that the proposed order aimed to create a voluntary framework for AI companies. Under the plan, companies developing advanced AI models would coordinate with the US government before releasing them publicly.

The proposal also included measures to strengthen cybersecurity using advanced AI systems. Officials reportedly planned to use the technology to improve protection for critical infrastructure, including banks and hospitals.

Trump did not specify which parts of the order he objected to.

Many technology companies in the US have argued that stricter AI controls could delay the release of new products, slow innovation and reduce business revenue. Industry groups also warned that modifying AI models to meet safety and risk-management requirements could increase operational costs.

Several US media outlets reported that XAI founder Elon Musk, Meta CEO Mark Zuckerberg and former Trump AI adviser David Sachs had pressured the administration over the order. However, Musk denied involvement in a post on X, saying he was unaware of the proposal and only spoke with Trump after the decision was made.

Concerns over the risks of advanced AI systems have grown in recent years. Experts have warned that powerful AI tools could make cyberattacks more sophisticated and difficult to prevent.

Analysts say the Trump administration has taken a more flexible approach toward large technology companies since returning to office. In contrast, former President Joe Biden’s administration pushed for stronger oversight and regulation of the tech sector, while Trump’s team has focused more on innovation and global competition.