Trump Claims Executive Authority Over AI Firms Amid Investor Anxiety

President Donald Trump claimed his administration already possesses criminal and regulatory powers over AI firms, stating no other safeguards are needed for the industry. The remarks, posted shortly after market open on Monday, coincided with selling pressure in AI-related stocks.

The post on Truth Social initially focused on asserting presidential oversight authority, though no new powers were introduced—federal prosecutors already have prosecution capabilities and regulators hold existing jurisdiction. What shifted is Trump's simultaneous advocacy for AI companies while showcasing this influence, potentially creating negative market sentiment regarding AI investments.

Major indices declined Monday: Nasdaq dropped 0.85%, S&P 500 fell 0.57%. Semiconductor stocks led losses—Marvell Technology down 8%, Intel 7%, AMD 5%, Nvidia and Broadcom around 3% each. AI cloud provider CoreWeave also slid 7%. SoftBank Group, a major external backer of OpenAI in Tokyo, closed down over 10%.

Trump's post aimed to signal Washington would not impede AI spending, which typically boosts markets positively. However, investors worry about voluntary internal slowdowns at research labs rather than federal regulation. The market interpreted Trump's comments as potentially marking a floor for AI trading, though analysts note this remains uncertain amid broader market pressures.

Anthropic CEO Dario Amodei recently proposed slowing development of the most powerful models, supported by Sam Altman and Elon Musk. Beijing rejected such interpretations as fearmongering, stating that intense competition harms no one's interests. Investor Michael Burry argued safety measures aim to exclude smaller competitors.