How Trump Was Persuaded to Regulate A.I.

President Trump's sudden shift from a hands-off approach to artificial intelligence to signing a voluntary AI regulation executive order marks a pivotal moment in U.S. tech policy. What began as a staunch defense of innovation—framed by White House A.I. czar David Sachs as protecting a 'beautiful baby' of an industry—collapsed after Anthropic's release of Mythos, a model capable of weaponizing software vulnerabilities. The threat of a cyberattack on critical infrastructure, amplified by warnings from Microsoft and JPMorgan Chase CEO Jamie Dimon, forced Treasury Secretary Scott Bessent and Chief of Staff Susie Wiles to push back against Silicon Valley’s libertarian ethos. After Trump initially canceled the order, fearing it would stifle innovation, he relented only after a White House meeting that watered down the proposal to a 30-day voluntary review window and added disclaimers against mandatory licensing. The result is a symbolic but consequential step forward—proof that even the most pro-industry administrations can be swayed by existential risk. Yet the real battle is just beginning: populist forces on both the left and right now demand far more—Bernie Sanders calls for a 50% public ownership stake in AI giants, while Steve Bannon demands a global AI arms treaty. The industry’s tentative embrace of regulation may be less about principle than survival, as public trust erodes and violence against tech leaders escalates.