--- title: "David Sacks Calls AI Regulation a 'Trojan Horse' to Shut Down Open Models, While Chamath Palihapitiya Warns US Investment Could 'Go Off of a Cliff'" type: "News" locale: "en" url: "https://longbridge.com/en/news/296777248.md" description: "David Sacks warned that AI safety regulations could become a 'Trojan horse' disadvantaging open models, while Chamath Palihapitiya cautioned that excessive restrictions might drive foreign investment out of the U.S. Senator Mark Warner urged Congress to address AI risks while maintaining competitiveness, and Nvidia CEO Jensen Huang supported both open and closed models, warning against exaggerated fears." datetime: "2026-08-24T10:36:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296777248.md) - [en](https://longbridge.com/en/news/296777248.md) - [zh-HK](https://longbridge.com/zh-HK/news/296777248.md) generator: "portal-rs" --- # David Sacks Calls AI Regulation a 'Trojan Horse' to Shut Down Open Models, While Chamath Palihapitiya Warns US Investment Could 'Go Off of a Cliff' Former White House AI and crypto czar **David Sacks** warned that proposed AI safety standards could evolve into regulations that disadvantage open models, while **Chamath Palihapitiya** cautioned that excessive restrictions could drive investment and capital outside the U.S. ## **Sacks Warns Open AI Models Face Regulation** On Friday, speaking on the All-In Podcast, Sacks argued that AI regulation could begin with a self-regulatory organization and eventually become mandatory. It’s a "Trojan horse of a FINRA for AI," he said, warning that voluntary standards and pre-release testing could eventually be codified into law. Sacks said regulators could then require the same safety standards for open and closed models, despite their technological differences. He argued that open models cannot be centrally monitored, rolled back or withdrawn once released. "Once you release an open model into the world, you can’t roll it back," Sacks said, warning that open models could ultimately be "shut off" if they cannot meet regulatory requirements. ## **Palihapitiya Warns AI Rules Could Drive Capital Abroad** Palihapitiya warned that overly restrictive U.S. regulations could make American operations less attractive and encourage companies to direct investment overseas. "What you will see is FDI, foreign direct investment in the United States, go off of a cliff," he said. He compared the potential impact with China’s crackdown on its technology sector, arguing that companies could redirect capital toward countries with more favorable regulatory environments. The discussion also turned to Silicon Valley’s changing culture. Palihapitiya argued that the industry had "completely lost what made it great," saying it once attracted "weirdos" and idealists but had become increasingly focused on credentials and making money. **Read Also: Anthropic CEO Warns Advanced AI Could Become Too Powerful For Governments Or Corporations To Control— 'Should Be Blocked Or Reversed As…'** ## **Warner, Huang Back Balanced AI Policy** Earlier, Sen. **Mark Warner** (D-Va.) urged Congress to quickly address AI’s economic and national security risks while protecting U.S. competitiveness, saying, "We can’t put AI back in the bottle." Meanwhile, **Nvidia Corp.** (NASDAQ:NVDA) CEO **Jensen Huang** backed both frontier open and closed AI models, arguing that open models could boost cybersecurity, innovation and technological sovereignty. Huang also called Chinese AI models "excellent" and said broader AI adoption could increase demand for Nvidia’s chips and infrastructure, while warning Washington against "science fiction" fears about AI regulation. ***Disclaimer*:** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* **Read Also: Meta CEO Mark Zuckerberg Says Chinese AI Model Ban Not an 'Effective Solution', Calls for Fewer Barriers: 'There's…This Question of Regulatory Capture'** *Photo courtesy: Shutterstock* ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Nvidia to use Poolside deal to build alternative to Chinese AI, WSJ says](https://longbridge.com/en/news/296727449.md) - [Fabrinet Shares Tumble As Nvidia Datacom Weakness Overshadows Telecom Strength](https://longbridge.com/en/news/296253299.md) - [Nvidia Stock (NVDA) Ditched By Retail Investors Ahead of Q2 Earnings](https://longbridge.com/en/news/296609730.md) - [IREN Just Passed Its Biggest AI Test as Microsoft and Nvidia Bet Billions](https://longbridge.com/en/news/296533962.md) - [AMD or Nvidia: Load Up on One AI Chip Stock, but Avoid the Other, Says Investor](https://longbridge.com/en/news/296792383.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**