AI industry that bankrolled Trump's deregulation now pleads for formal rules after export controls shock

AI executives who helped elect President Donald Trump on a promise of deregulation are now pleading for formal oversight after weeks of ad hoc export controls and restricted model launches, Politico reported on Friday. The industry that once warned Biden-era AI safety policies would crush American innovation is calling the current chaos worse.

The reversal follows a rapid series of actions. The White House imposed export controls on Anthropic's Mythos 5 and Fable 5 models on June 12 after Amazon's CEO raised security concerns. This week the administration pressured OpenAI to restrict the launch of its latest model, Sol, to roughly 20 government-approved partners. One senior AI executive, granted anonymity, called the outcome a de facto European-style licensing regime.

Voluntary framework overtaken by events

Trump entered his second term after a wave of Silicon Valley donations from billionaires who argued that state-level regulation would stifle progress. He spent his first year blocking state AI laws and signed a voluntary executive order on June 2 that asked companies to submit models for 30-day review before release. The framework was never finalized.

Instead, the White House moved to unilateral controls. On Friday the administration partially rescinded the Anthropic export ban, allowing Mythos 5 to be shared with more than 100 approved companies. But Fable 5 remains blocked for reasons the government has not explained. An OpenAI executive told Politico the industry expects a finalized executive order soon to replace the crackdown with the voluntary vetting framework originally outlined.

Industry caught between fear and need for clarity

Paul Lekas, head of global public policy at the Software and Information Industry Association, said there is a real need for a formal process. The industry wants to avoid releases based on ad hoc decisions and one-off licenses. But AI lobbyists told Politico they are afraid to push the White House for answers. One AI policy adviser said it feels like they are walking on eggshells, fearing that aggressive lobbying could trigger export controls or other retaliation.

Saif Khan, former senior adviser on critical and emerging technology at the Commerce Department under Biden, called the Trump approach opaque and almost vibes-based. He said the administration's actions amount to an almost complete moratorium on new releases that will start seriously impacting companies' bottom lines, far more damaging than anything Biden envisioned.

Dean Ball, a former Trump administration official who authored the White House AI Action Plan and is joining OpenAI as head of strategic futures on July 6, acknowledged the tension. He called the White House's concerns 100 percent legitimate but said they are likely overreacting. Ball added that he is glad the administration has arrived at taking AI safety seriously, even if the execution is flawed.

What comes next

Lekas said the tech industry is developing a coordinated push for an actual framework on advanced AI rules and wants Washington to codify it, whether through executive order or legislation. He warned that if AI companies cannot agree on a standardized approach to safety, they will keep receiving the same unpredictable treatment. White House spokesperson Liz Huston defended the president's record, citing fast-tracked permits for AI infrastructure and the executive order aimed at stopping state-level regulation. She said President Trump has clearly and repeatedly articulated his goal to ensure continued American dominance in AI.