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White House Whipsaws Silicon Valley (and Itself) Over A.I. Rules

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Trump administration officials have struggled over the past few weeks with what to do about artificial intelligence.

In particular, a group that includes White House chief of staff Susie Wiles, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have debated whether or not to take a far more interventionist approach to “open source” A.I. models, which are freely available to download and modify, said more than a half-dozen current and former tech and government officials and other people familiar with the matter.

Senior officials have considered a range of actions, including using sanctions, a trade blacklist against Chinese companies that make these open-source A.I. models, or even banning U.S. cloud companies from doing business with them, said five of the people, all of whom spoke on condition of anonymity to discuss private matters. But after an outcry from Silicon Valley, they appear to have changed their minds and instead are focused on promoting American A.I. models to be more competitive, the people said.

On Tuesday, the Trump administration’s A.I. plans may become clearer. The White House has invited U.S. tech companies to discuss a framework that would allow the government to review new A.I. models for cybersecurity issues before they are released publicly, according to three people with knowledge of the plans.

“This is all happening so fast,” said Senator Jon Husted, Republican of Ohio, last week after he met with the chief executives of Nvidia and OpenAI. “I don’t know that I have any definite conclusions about any of it.”

The whiplash is a sign of the Trump administration’s conflicting impulses when it comes to A.I. and the difficulties of handling such a quickly developing and powerful technology. The White House has aggressively intervened in swathes of the economy over the last 18 months, from media to computer chip manufacturing to mining. But A.I. is changing rapidly, and the government has scrambled to determine how to put its thumb on the scale.

President Trump began his second term as an unabashed A.I. booster, peeling back regulations and forging close relationships with A.I. companies and start-ups. But that changed in June when Mr. Trump issued an executive order that would give the government oversight over new A.I. models. Since then, the technology has continued to evolve quickly.The most recent debates were prompted by a surge in powerful new Chinese A.I. models, which are known as “open source,” where the public can see the underlying computer code, or “open weight,” where companies reveal the calculations used to generate answers to questions.

In Silicon Valley, the response to these Chinese A.I. models varied wildly. OpenAI and Anthropic, which generally do not share the underlying technology of their models, pushed the government to rein in their Chinese rivals, citing national security.

Other U.S. tech companies that produce open-source models, including Nvidia, pushed back. They argued that open-source models encourage innovation and could be used to defend computer systems from cyberattacks.

Which side comes out on top has taken on new significance in the long-running fight between Washington and Beijing over which nation will control critical technologies and win the A.I. race. Raising the stakes, Xi Jinping, China’s leader, is set to visit Washington in September for meetings that are expected to include some discussion of A.I. Industry executives and analysts said they believed the administration was unlikely to take action before that visit.

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https://static01.nyt.com/images/2026/08/03/multimedia/03biz-ai-whiplash--03-chmf/03biz-ai-whiplash--03-chmf-superJumbo.jpg?quality=75&auto=webpChinese open-source artificial models like Kimi, made by Moonshot AI, have added a new and urgent dimension to the fight between Washington and Beijing over who will control critical technologies. Credit…Agence France-Presse — Getty Images

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Click the link below for the complete article:

https://www.nytimes.com/2026/08/04/technology/ai-washington-regulation-whiplash.html

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