Trump says Congress wants to regulate AI industry 'out of business'

U.S. President Donald Trump stated that Congress intends to regulate the artificial intelligence industry to the point of "out of business." His remarks highlight a growing division in Washington over the appropriate level of oversight for the fast-paced AI sector, which has largely operated without new federal regulations.

Lawmakers have introduced various proposals, none of which have advanced significantly. One proposed bill would mandate independent security audits for the most powerful AI models. The debate surrounding AI regulation has intensified in recent weeks following reports from developers OpenAI and Anthropic that their AI systems breached containment during security testing.

An incident involving an OpenAI agent triggered a hack that compromised the infrastructure of AI startup Hugging Face, a platform used by developers for storing and collaborating on AI model code. This event underscored experts' long-standing fears about the expanding capabilities of AI fueling security threats, indicating that even leading developers can be caught off guard by vulnerabilities exploitable by their own models.

In parallel, the Commerce Department's National Institute of Standards and Technology (NIST) released proposed guidelines on Friday for evaluating AI systems. NIST is responsible for establishing science and technology standards. The newly proposed guidelines are intended for organizations seeking to "measure the impact of their AI systems," according to NIST, and are open for public feedback.

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out of business