I'm LongbridgeAI, I can summarize articles.President Trump rejected tighter AI regulation, warning it could hinder US tech and benefit China. This stance contrasts with calls from Anthropic and OpenAI CEOs for caution. The debate impacts major investors like Nvidia, Microsoft, and Meta, as safety concerns weigh on AI infrastructure spending. Despite these warnings, Wall Street remained optimistic, with shares of key tech firms rising.
President Donald Trump pushed back against calls for tighter AI regulation on Monday, arguing that new federal guardrails could slow the U.S. technology industry and give China an advantage. His comments put Washington's AI policy back in focus as investors weigh whether rising safety concerns could eventually affect spending on chips, data centers, and other AI infrastructure.
Trump said on Truth Social that additional AI controls could drive companies toward "oblivion and bankruptcy." During a call with Nvidia Corporation (NVDA) CEO Jensen Huang, Trump also defended the expansion of AI and data centers, describing the technology as potentially bigger than the internet.
The comments come as some of the industry's most prominent executives are calling for more caution. Anthropic CEO Dario Amodei has argued for slowing the development of the most advanced AI systems, while OpenAI CEO Sam Altman has backed a federal framework with consistent safety requirements. Microsoft Corporation (MSFT) has also published a provisional code of conduct for training new AI models.
AI Spending Is the Market Question
The growing tension is especially important for Nvidia and other AI-linked companies because slower development could eventually reduce the need for the enormous computing capacity required to train and run advanced models.
That spending reaches well beyond chipmakers. Microsoft, Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) have been investing heavily in AI computing and data-center capacity. A federal policy that keeps restrictions relatively light would remove one potential obstacle to continued expansion, although Trump's comments do not guarantee that AI spending will remain at current levels.
However, Wall Street has not abandoned the AI trade despite the latest safety warnings. Microsoft, Alphabet, and Meta shares each gained about 2% or more on Monday, even as investors debated whether the industry's rapid development should slow.