Ex-White House AI Chief Cautions Against Overregulation That Could Give China an Edge in AI
Former White House ‘AI czar’ David Sacks discusses AI regulation, competition with China, and the risks of advanced AI-powered ‘cyber weapons’ on ‘Kudlow.’
Former White House “AI czar” David Sacks expressed concerns on Monday regarding the potential overregulation of artificial intelligence, warning that it could jeopardize America’s competitive edge over China in the global AI landscape.
During his appearance on “Kudlow,” Sacks stated, “If you try to have an FDA for AI—and there are some people who want to go that far—then I think we could lose this AI race to China. We’re only six to nine months ahead of China. So really, every month counts.”
His comments followed President Donald Trump‘s recent executive order, which established a voluntary framework for AI companies to share advanced models with the federal government prior to their public release.
A seasoned entrepreneur from Silicon Valley, Sacks advocated for a lighter approach to AI regulation. He cautioned that excessive regulations could stifle innovation at a crucial juncture in the competition with Beijing.
CHINA RACES AHEAD ON AI —TRUMP WARNS AMERICA CAN’T REGULATE ITSELF INTO DEFEAT
US President Donald Trump (L) shakes hands with China’s President Xi Jinping at the Great Hall of the People in Beijing on May 14, 2026. (Kenny HOLSTON / POOL / AFP via Getty Images / Getty Images)
Sacks compared the government’s eagerness to regulate AI to the fervor surrounding climate change. He stated, “AI has become the new climate change. It’s this imminent catastrophe that is requiring all this government intervention. But there’s very little evidence to support it.”
He emphasized the need for a measured approach, saying, “We’re open to evidence—if there’s actually a problem, we should do something about it. But I don’t think we should do it in this knee-jerk way.”
MORNING GLORY: WHY THE ANGST ABOUT AI?
While acknowledging that some advanced AI models—like Anthropic’s Mythos—pose significant cybersecurity threats, Sacks warned against the “moral panic” surrounding emerging technologies. “There is this panic, almost like a moral panic, around AI,” he told host Larry Kudlow. “And I’m just afraid that we might overreact and shoot ourselves in the foot and then hand this incredible technology to China.
David Sacks, White House Artificial Intelligence (AI) and Crypto czar, during The White House Digital Assets Summit in the State Dining Room of the White House in Washington, DC, US, on Friday, March 7, 2025. (Chris Kleponis/CNP/Bloomberg via Getty Images / Getty Images)
Sacks also countered fears that AI will lead to widespread job losses for Americans, referencing the recent labor market strength highlighted by a robust May jobs report.
PALANTIR’S SHYAM SANKAR: AMERICANS ARE ‘BEING LIED TO’ ABOUT AI JOB DISPLACEMENT FEARS
He stated, “There’s been a lot of claims that AI is gonna create some sort of imminent job apocalypse, but we’re seeing the exact opposite right now.” He noted that the recent jobs report indicated an increase of approximately 172,000 new jobs, significantly exceeding economists’ expectations, attributing much of this growth to AI.
Sacks advocated for a cohesive federal strategy for AI governance, suggesting that a unified framework would be more effective than a fragmented approach with varying state regulations.
Economist Steve Moore discusses the latest May jobs report, U.S. economic strength, and the impact of President Donald Trump’s pro-business policies on ‘Maria Bartiromo’s Wall Street.’
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Sacks concluded by emphasizing that President Trump has called for one rulebook for AI governance. He believes that if Congress can reach a compromise on this issue, it would be far superior to a patchwork of state regulations. Trump is reportedly set to meet with executives from leading AI companies at the White House this week to discuss the administration’s next steps on AI policy.
Former White House ‘AI czar’ David Sacks discusses AI regulation, competition with China, and the risks of advanced AI-powered ‘cyber weapons’ on ‘Kudlow.’
Former White House “AI czar” David Sacks expressed concerns on Monday regarding the potential overregulation of artificial intelligence, warning that it could jeopardize America’s competitive edge over China in the global AI landscape.
During his appearance on “Kudlow,” Sacks stated, “If you try to have an FDA for AI—and there are some people who want to go that far—then I think we could lose this AI race to China. We’re only six to nine months ahead of China. So really, every month counts.”
His comments followed President Donald Trump‘s recent executive order, which established a voluntary framework for AI companies to share advanced models with the federal government prior to their public release.
A seasoned entrepreneur from Silicon Valley, Sacks advocated for a lighter approach to AI regulation. He cautioned that excessive regulations could stifle innovation at a crucial juncture in the competition with Beijing.
CHINA RACES AHEAD ON AI —TRUMP WARNS AMERICA CAN’T REGULATE ITSELF INTO DEFEAT
US President Donald Trump (L) shakes hands with China’s President Xi Jinping at the Great Hall of the People in Beijing on May 14, 2026. (Kenny HOLSTON / POOL / AFP via Getty Images / Getty Images)
Sacks compared the government’s eagerness to regulate AI to the fervor surrounding climate change. He stated, “AI has become the new climate change. It’s this imminent catastrophe that is requiring all this government intervention. But there’s very little evidence to support it.”
He emphasized the need for a measured approach, saying, “We’re open to evidence—if there’s actually a problem, we should do something about it. But I don’t think we should do it in this knee-jerk way.”
MORNING GLORY: WHY THE ANGST ABOUT AI?
While acknowledging that some advanced AI models—like Anthropic’s Mythos—pose significant cybersecurity threats, Sacks warned against the “moral panic” surrounding emerging technologies. “There is this panic, almost like a moral panic, around AI,” he told host Larry Kudlow. “And I’m just afraid that we might overreact and shoot ourselves in the foot and then hand this incredible technology to China.
David Sacks, White House Artificial Intelligence (AI) and Crypto czar, during The White House Digital Assets Summit in the State Dining Room of the White House in Washington, DC, US, on Friday, March 7, 2025. (Chris Kleponis/CNP/Bloomberg via Getty Images / Getty Images)
Sacks also countered fears that AI will lead to widespread job losses for Americans, referencing the recent labor market strength highlighted by a robust May jobs report.
PALANTIR’S SHYAM SANKAR: AMERICANS ARE ‘BEING LIED TO’ ABOUT AI JOB DISPLACEMENT FEARS
He stated, “There’s been a lot of claims that AI is gonna create some sort of imminent job apocalypse, but we’re seeing the exact opposite right now.” He noted that the recent jobs report indicated an increase of approximately 172,000 new jobs, significantly exceeding economists’ expectations, attributing much of this growth to AI.
Sacks advocated for a cohesive federal strategy for AI governance, suggesting that a unified framework would be more effective than a fragmented approach with varying state regulations.
Economist Steve Moore discusses the latest May jobs report, U.S. economic strength, and the impact of President Donald Trump’s pro-business policies on ‘Maria Bartiromo’s Wall Street.’
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Sacks concluded by emphasizing that President Trump has called for one rulebook for AI governance. He believes that if Congress can reach a compromise on this issue, it would be far superior to a patchwork of state regulations. Trump is reportedly set to meet with executives from leading AI companies at the White House this week to discuss the administration’s next steps on AI policy.
