Trump Delays AI Order Over China Competition Concerns

US President Donald Trump scrapped a planned White House signing on Thursday for an artificial intelligence directive, saying he was concerned the measure might weaken the United States' advantage in the sector.

Trump told reporters the order would be delayed after he reviewed its wording and found parts he opposed. The decision was disclosed only hours before the Oval Office ceremony was due to happen.

"We're leading China, we're leading everybody, and I don't want to do anything that's going to get in the way of that lead," Trump said during a separate event in the Oval Office.

Pressure for federal oversight of the most advanced AI platforms has grown as banks and other major institutions worry about how quickly the technology can identify weaknesses in software systems around the world.

In April, Treasury Secretary Scott Bessent and outgoing Federal Reserve Chair Jerome Powell held an emergency session with Wall Street chief executives to discuss cyber threats tied to Anthropic's Claude Mythos AI model.

Bessent said at CNBC's "Invest in America Forum" in Washington that the Treasury Department meeting was arranged so banks would understand the dangers connected to such models. "This new Anthropic model is very powerful," he said. "Some banks are doing a better job in cybersecurity than others, and we want to have the ability to convene them and talk about what is best practices and where they should be heading."

The concerns prompted some supporters of the Republican president to recommend stronger ways of placing those AI systems before vetted cyber specialists.

However, any policy seen as federal review of private AI products would mark a major departure from Trump's second-term promise to roll back AI safety rules introduced by Democratic President Joe Biden.