Trump's AI gamble: White House downplays risks as economy fears grow

President Donald Trump publicly dismisses AI safety concerns as a "HOAX," but his administration is privately debating whether the technology could destabilize the economy, driven by fears that pausing AI growth could trigger a broader market crash. Venture capitalist David Sacks lobbied to gut a planned executive order requiring government safety checks, while Meta's Mark Zuckerberg and Nvidia's Jensen Huang warn Trump that losing ground to China outweighs domestic safeguards. However, unexpected AI failures this summer have led some officials to acknowledge risks like AI-enabled cyberattacks and military interference, though no single official coordinates AI policy. The administration lacks a dedicated AI coordinator, with the national cyber director role held by a former RNC official and several AI security staff departing recently. Anthropic CEO Dario Amodei fell out of favor after proposing industry slowdowns and safety inspectors, while OpenAI's Sam Altman and Elon Musk remain in contact with Trump, who sees AI growth as key to his manufacturing revival promises.