As President-elect Donald Trump prepares to take office, Silicon Valley is divided on what his administration will mean for AI regulation. While some tech veterans like venture capitalist Marc Andreessen celebrate what they see as the end of restrictive AI oversight, Trump has surrounded himself with advisors holding vastly different views on artificial intelligence governance.
Andreessen, who endorsed Trump and donated $2.5 million to a pro-Trump Super PAC, declared that “the campaign by woke Big AI to gain a regulatory capture cartel in Washington just imploded,” predicting the US would become “the preeminent AI superpower in the world.” Trump himself has promised to repeal President Biden’s executive order on AI in the interest of furthering innovation.
However, the picture is more complex than simple deregulation. According to The Washington Post, Trump advisors drafted an executive order in July to intensify US focus on AI, including plans for “Manhattan Projects” to develop AI military technology, new frameworks for evaluating AI models, and reviews of existing AI regulations.
Elon Musk emerges as an unexpected voice of caution within Trump’s inner circle. Despite spending over $130 million on Trump’s campaign, Musk has consistently called for greater AI regulation. He supported California’s SB1047 AI regulation bill, which Governor Gavin Newsom ultimately vetoed, and sued OpenAI—which he co-founded—for allegedly prioritizing profits over principles.
Vivek Ramaswamy, Musk’s partner in the new Department of Government Efficiency (DOGE), shares concerns about AI risks. At a 2023 press conference, Ramaswamy compared AI liability to environmental regulations: “If you’re developing an AI algorithm today that has a negative impact on other people, you bear the liability for it.” Both Musk and Ramaswamy plan to pursue “regulatory rescissions, administrative reductions, and cost savings,” though it’s unclear how this will affect their AI regulation stance.
Vice President-elect JD Vance represents the deregulation camp. The former venture capitalist and biotech executive has argued that Big Tech companies push for AI regulations to “entrench the tech incumbents” and prevent new competitors from emerging. At a July Senate hearing, Vance criticized fears that AI would destroy humanity as overblown.
Experts remain uncertain about the administration’s direction. Georgetown University computer science professor Calvin Newport noted that Trump will have “JD Vance on one shoulder, arguing regulation will hurt our competitiveness with China, and Elon Musk on the other, arguing for protections against existential risks.” Former Google CEO Eric Schmidt expects Trump to roll back regulations, stating that “whatever regulations around trust and safety are going to occur are going to be very different and much later than I thought.”
Key Quotes
The campaign by woke Big AI to gain a regulatory capture cartel in Washington just imploded. Stick a fork in it, it’s over. The US will be the preeminent AI superpower in the world after all.
Marc Andreessen, prominent venture capitalist and Trump supporter who donated $2.5 million to a pro-Trump Super PAC, expressed optimism that the new administration would eliminate what he views as restrictive AI regulations favoring incumbent tech companies.
Just like you can’t dump your chemicals, if you’re a chemical company, in somebody else’s river, well if you’re developing an AI algorithm today that has a negative impact on other people, you bear the liability for it.
Vivek Ramaswamy, co-leader of the new Department of Government Efficiency alongside Elon Musk, advocated for AI liability frameworks at a 2023 press conference, comparing AI regulation to environmental protections and acknowledging real risks alongside benefits.
When it comes to Trump’s policy decisions, there are few areas less predictable right now than AI. The incoming president will likely have JD Vance on one shoulder, arguing regulation will hurt our competitiveness with China, and Elon Musk on the other, arguing for protections against existential risks — it’s anyone’s guess which voice will prevail.
Calvin Newport, Georgetown University computer science professor and technology author, captured the fundamental uncertainty surrounding Trump’s AI policy direction given the conflicting perspectives of his key advisors.
I think a fair statement is that in the US, whatever regulations around trust and safety are going to occur are going to be very different and much later than I thought. Now, if you’re an entrepreneur trying to do crazy stuff, this is good news. If you’re a person who worries about the dangers of these tools, it’s not good news.
Former Google CEO Eric Schmidt, who founded military drone startup White Stork, predicted at his book launch that Trump would significantly roll back AI regulations, creating a more permissive environment for innovation but potentially fewer safeguards against AI risks.
Our Take
The Trump administration’s approach to AI regulation reveals a fascinating paradox: the most pro-business, deregulation-focused president in recent history has inadvertently assembled an advisory team with genuinely divergent views on one of technology’s most consequential issues. Elon Musk’s presence as a regulatory advocate is particularly ironic given his libertarian leanings and Trump’s deregulatory agenda. This internal tension may actually produce more thoughtful AI policy than either extreme would alone. The real wildcard is whether Trump’s competitive instincts regarding China will override domestic regulatory debates—national security concerns could justify both aggressive AI development and strict oversight of foreign AI systems. The “Manhattan Project” language suggests military AI applications may receive prioritized, centralized development regardless of broader regulatory philosophy. Ultimately, this administration may inadvertently create a bifurcated approach: minimal regulation for commercial AI while maintaining strict oversight for national security applications. The tech industry should prepare for inconsistency rather than a clear deregulatory path.
Why This Matters
This story represents a critical inflection point for the future of AI governance in the United States. The Trump administration’s approach to AI regulation will determine whether America pursues aggressive innovation at the expense of safety guardrails or balances development with risk management. With conflicting voices in Trump’s inner circle—from deregulation advocates like JD Vance to cautious voices like Elon Musk—the direction remains uncertain.
The implications extend far beyond Silicon Valley. AI regulation will shape competitiveness with China, determine liability frameworks for AI-caused harms, and influence whether startups can challenge established tech giants. For businesses, the regulatory environment will affect investment decisions, product development timelines, and risk management strategies. For workers and society, it will determine protections against AI-related harms while potentially accelerating job displacement and technological change. The administration’s choices will also set precedents globally, as other nations look to the US for leadership on AI governance. This uncertainty creates both opportunities for entrepreneurs seeking lighter regulation and concerns for those worried about unchecked AI development.
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Source: https://www.businessinsider.com/trump-ai-regulation-musk-ramaswamy-vance-2024-11