Silicon Valley invested to eliminate AI regulation, and now it seeks to reinstate the rules.

      TL;DRAI executives who supported Trump's deregulation efforts are now seeking a formal structure following disorganized export controls and model restrictions. The AI sector that significantly contributed to electing Donald Trump based on his promise to leave the technology unregulated is now requesting formal oversight, as reported by Politico on Friday. Leaders in advanced AI companies expressed to the outlet that they find the administration’s erratic approach to model regulation more harmful than anything the Biden administration proposed.

      This change has occurred swiftly. Trump began his second term after receiving substantial donations from Silicon Valley billionaires who cautioned that Biden’s AI safety measures would stifle American innovation. During his first year, he aimed to prevent states from regulating the technology and issued a voluntary executive order on June 2, encouraging companies to submit models for review for 30 days before release.

      However, this voluntary framework was quickly overshadowed by events. The White House imposed export restrictions on Anthropic’s Mythos 5 and Fable 5 models on June 12 after Amazon’s CEO expressed security concerns to the Treasury Secretary. Recently, the administration urged OpenAI to limit the launch of its newest model, Sol, to about 20 government-approved partners, marking the first instance of a U.S. company launching a frontier model under a government-managed access list.

      One senior AI executive, who spoke anonymously to Politico, referred to the outcome as “a de facto European-style licensing regime.” Paul Lekas, head of global public policy at the Software and Information Industry Association, which represents top AI firms, stated there is “a real need for a formal process” and that the industry aims to avoid releases stemming from “an ad hoc process and a one-off license.”

      Industry representatives also mentioned to Politico their apprehension about pushing the White House for clarity. “It feels like they’re walking on eggshells a little bit,” remarked one AI policy advisor working with prominent frontier labs. Companies are concerned that aggressive lobbying could trigger export controls or other regulatory backlash.

      Saif Khan, a former senior adviser on critical and emerging technology at the Commerce Department under Biden, described the Trump approach as an overreaction stemming from past dismissiveness. “Due to some dismissiveness of the risks, there’s been no preparatory work, no hiring of experts,” Khan told Politico, labeling the results as “opaque, almost vibes-based.”

      Khan stated that the administration's actions represent “an almost complete moratorium on new releases” that will “start seriously impacting companies’ bottom lines,” deeming it far more damaging than anything Biden envisioned. The Biden administration’s final rule would have imposed export controls on chips and AI model weights for certain countries but never attempted to block domestic releases.

      Dean Ball, a former official in the Trump administration who drafted the White House AI Action Plan and will join OpenAI as head of strategic futures on July 6, acknowledged the tension. He asserted that the administration’s concerns are “100 percent legitimate” but that “they are likely overreacting to these legitimate concerns.” Ball expressed satisfaction that the White House is taking AI safety seriously, despite the flawed execution.

      On Friday, the administration partially lifted the export ban on Anthropic, permitting Mythos 5 to be shared with over 100 approved companies, though Fable 5 remains restricted for unexplained reasons. An OpenAI executive stated to Politico that the industry anticipates the administration will soon finalize its June 2 executive order and replace the current restrictions with the originally outlined voluntary vetting framework.

      Lekas mentioned that the tech industry is working towards “a coordinated push for an actual framework” regarding advanced AI regulations and seeks Washington’s formalization of it, either through executive order or legislation. He cautioned that if AI companies cannot agree on a standardized safety approach, they will continue facing the same unpredictable treatment.

      White House spokesperson Liz Huston defended the president’s record, mentioning expedited permits for AI infrastructure and the executive order aimed at halting state-level regulation. “President Trump has clearly and repeatedly articulated his goal: ensure continued American dominance in AI,” Huston stated.