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Trump Signs Softer AI Order After Silicon Valley Pushback

Published Jun 2, 2026
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Summary:
  • Trump signed an AI executive order requiring only a voluntary 30-day government review before new models go public, down from 90 days in the original draft.
  • The order explicitly rules out any mandatory federal licensing, preclearance, or permitting requirement for AI models, including the most powerful ones.
  • The softer outcome followed reported pressure from former White House AI czar David Sacks and others who argued stricter rules would hand China an advantage.

The White House had a tougher AI order ready to go, but Silicon Valley pushed back - and the version Trump signed Tuesday is the one the industry wanted.

The order asks certain AI companies to voluntarily submit new models for government testing 30 days before they go public, down from 90 days in the earlier draft.

Industry insiders had pushed for closer to two weeks, so the final number lands much nearer to what the companies wanted than what the original demanded.

What's Actually In It

The 30-day review is voluntary - not required. The order says so in plain language: nothing here creates "a mandatory governmental licensing, preclearance, or permitting requirement" for new AI models, including the most powerful ones.

That's the line the industry fought for - no federal sign-off before a model ships, no licensing regime, and no permitting office sitting between a new model and its release.

The order also tells the Justice Department to treat AI-assisted hacking and unauthorized access as a high-priority enforcement area, focusing the security piece on bad actors who use AI rather than the labs that build it.

Every weekday morning, Market Briefs breaks down what policy moves like this actually mean for the companies building AI - and a free investing masterclass comes with it when you join.

Why It Got Softer

Trump was supposed to sign the tougher version in late May before he delayed it.

The pushback came from inside his own circle, with former White House AI czar David Sacks - a venture capitalist with deep ties to the industry - reportedly part of the pressure campaign.

Trump said at the time he didn't want to slow down American AI firms in the race against China, a framing that's become the go-to defense for anyone in tech who wants Washington to back off.

If a rule could give Beijing a chance to catch up, the White House doesn't want it on the books.

How It Fits The Bigger Picture

This isn't the first AI order from this White House. Last December, Trump signed one pushing for a single national rulebook on AI - meant to preempt state AI laws.

Add it up and the direction is clear: the federal government wants to set the rules, not the states - and the rules it wants to set are light.

What To Watch

Voluntary is the word that matters. AI companies can submit models for review or skip it entirely, and the order has no teeth if a company decides 30 days is still too long.

The bigger signal is who's setting the pace: Trump was going to sign a stricter order with Silicon Valley CEOs standing behind him, but he signed a softer one alone instead.

The industry got what it wanted without showing up for the photo.

If you want this kind of read on the market every morning, join 350,000+ investors reading Market Briefs - you also get a 45-minute investing course as a bonus.

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