The Trump administration is developing plans for an independent regulator to vet the safety of artificial intelligence models, with Treasury Secretary Scott Bessent helping develop the proposal. According to reports from Business Standard, the plan would create an independent regulatory agency for AI that would report to the Securities and Exchange Commission, similar to the Financial Industry Regulatory Authority. The proposal is currently being reviewed by White House Chief of Staff Susie Wiles, who typically becomes involved in policy debates only when they show political risk for the president.
The proposed framework aims to address concerns from both Wall Street firms seeking to minimize AI's cybersecurity risks and Silicon Valley companies frustrated by what they see as an inconsistent administration approach. As reported by Business Standard, Anthropic PBC was hit with US export controls last month that led to the temporary disablement of its Fable 5 and Mythos 5 models, while OpenAI made significant changes at the government's request before releasing its latest Sol model. Both companies objected to the government's moves, calling them excessive relative to the safety issues identified by US officials.
The deliberations about AI oversight are unfolding amid intensifying competition with China for global leadership in the technology. According to Business Standard, Chinese AI startup Moonshot unveiled its new Kimi K3 model on Friday, which rivals more expensive systems from OpenAI and Anthropic, sparking new questions among investors about whether the US industry will sustain its spending spree on AI chips and data centers. David Sacks, the venture capitalist and former White House AI czar, suggested the new Chinese model was 'concerning' and the result of America 'tying itself in knots' including by pushing for government approval of AI models.
The plan aligns with policy suggestions published earlier this week by Google DeepMind CEO Demis Hassabis, who will be meeting with policymakers in Washington next week to lobby for his plan. As reported by Business Standard, his recommendations won praise from Microsoft CEO Satya Nadella, as well as OpenAI CEO Sam Altman and SpaceX CEO Elon Musk, who are typically bitter rivals. Hassabis's plan suggests a board of independent technical experts review AI models as part of a standards body overseen by the federal government, with industry funding the self-regulatory organization through collaboration with government agencies and US national labs.
