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On Tuesday, President Donald Trump warned that China could "easily catch" the U.S. in the global artificial intelligence race unless the country adopts a unified federal approach to AI regulation.
In a post on Truth Social, Trump argued that the U.S. risks losing its competitive edge because states are crafting their own rules for artificial intelligence.
He said investment in AI is helping make the U.S. economy the "hottest in the world," but warned that "overregulation by the states" threatens that momentum.
Trump criticized efforts by some states to incorporate diversity and inclusion requirements into AI systems, stating it could lead to what he described as "woke AI."
He urged Congress to mandate one national regulatory framework, saying a fragmented system gives China room to outpace the U.S. "If we don't," he said, "China will easily catch us in the AI race."
See Also: Palantir Could Be Nvidia's Fastest Route To $500 Billion In AI Software — Cathie Wood Saw It Coming
Trump's warning follows growing concerns from industry figures.
Investor Kevin O'Leary said China is "crushing" the U.S. in electricity capacity, arguing that America's grid is already tapped out while China can add new coal plants without delays.
Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang has issued similar cautions, noting that China's cheaper power and faster approvals give it a structural advantage.
Benzinga's Edge Stock Rankings show Nvidia posting strong Momentum, Growth and Quality scores, with a steady upward trend across short, medium and long-term periods. Click here to see how it stacks up against competitors.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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Posted In: NVDA
