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Trump Says AI Could Be 'Bigger Than the Internet' as He Pushes Light-Touch Regulation
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President Donald Trump said Wednesday that artificial intelligence could be "bigger than the internet" as he advocated for light-touch regulation. Speaking at a White House gathering with crypto executives and financial regulators, Trump stressed that rules must not stifle the industry. He emphasized the need to outpace China in AI development.
Trump's remarks came ahead of the CFTC's first Innovation Advisory Committee meeting. He identified China as the closest U.S. competitor and said AI would likely be discussed during Chinese President Xi Jinping's visit on September 24. The president also defended building new power plants for data centers. He described the existing electrical grid as "old, tired, and weak."
In March, major firms including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed the White House's Ratepayer Protection Pledge. They agreed to fund new electricity generation for their data centers. Trump touted these efforts as a way to avoid relying on the outdated grid.
However, data center expansion faces rising opposition. At least 37 people have been arrested in protests this year, and lawmakers in 15 states have considered moratoriums. Pennsylvania Governor Josh Shapiro signed an executive order requiring developers to cover grid costs. Banks are also weighing community resistance, with 75 data centers worth $130 billion facing local opposition in early 2026.
Trump urged governors and mayors to welcome AI projects, citing jobs and tax revenue. He said he would absolutely want a data center in his town. Yet he acknowledged the industry "could use a little public relations help." Environmental concerns over electricity and water use remain contentious.
The administration's strategy prioritizes innovation over local concerns. By allowing companies to build their own power plants, it aims to bypass regulatory hurdles. This light-touch approach is central to maintaining U.S. leadership.
AI is expected to be a major topic during Xi's upcoming visit. The outcome could influence the global AI race. For now, Trump is betting that economic benefits will outweigh growing public opposition.
