President Trump’s new executive order blocking states from creating their own AI regulations is being cheered by big tech. Wedbush analyst Dan Ives called the move a “major win” for OpenAI, Google $GOOGL ( ▼ 2.08% ) , Microsoft $MSFT ( ▲ 1.42% ) , and Meta $META ( ▲ 1.46% ) , all of which have poured massive investments into AI and seen their share prices soar as the technology takes off.
Ives noted that more than 1,000 AI related bills have been proposed at the state level, creating the risk of a patchwork of rules that could slow innovation. He argued that the administration’s push for a single national AI framework keeps the U.S. competitive with China and protects the startup ecosystem. Under the executive order, states that enact restrictive AI laws could lose access to certain federal funds.
White House AI advisor Sriram Krishnan said on CNBC this morning that he plans to work with Congress to craft a unified national framework for AI. The goal is to ensure clarity for developers and companies while maintaining U.S. leadership in the technology.
Even with Ives’ bullish view, AI stocks are mixed today. Nvidia $NVDA ( ▲ 3.08% ) is one of the few names trading higher after reports of strong H200 demand from China. Broader chip and AI plays are under pressure, with the VanEck Semiconductor ETF SMH down nearly 1 percent in premarket trading following disappointing earnings from Oracle $ORCL ( ▲ 0.89% ) earlier this week.