Pentagon CTO says U.S. government shouldn't take stakes in tech giants, questions adding AI regs

• Michael rejected government ownership in AI firms, noting U.S. AI leaders are 'biggest companies in the history of the world,' despite Trump administration taking stakes in other private companies including a 10% stake in an unnamed entity
• The CTO opposed pre-regulation similar to Europe's approach, suggesting existing FTC laws are sufficient, and called concerns about AI risks part of 'extinction, death-cult-like philosophies'
• Position aligns with Trump administration's goal to rapidly expand AI and data centers to compete with China, with the president calling AI safety concerns a 'hoax' and 'scam'

Pentagon CTO Opposes Government Stakes in AI Companies, Questions New Regulations

Pentagon Chief Technology Officer Emil Michael stated Wednesday that the Trump administration should not nationalize or take government stakes in artificial intelligence companies. In a CNBC "Squawk on the Street" appearance, Michael emphasized, "We don't want government to get in the middle," calling nationalization ill-suited for U.S. AI leaders that rank among the "biggest companies in the history of the world."

Key Position on Regulation:

Michael repeatedly opposed expanding government regulatory oversight of AI firms, aligning with President Trump's stance. This comes despite warnings from industry leaders like Anthropic CEO Dario Amodei, who have advocated slowing AI model development to mitigate risks. Michael contrasted the U.S. approach with Europe's "pre-regulation" model, arguing companies should be held responsible for developing safe, aligned products before release.

Administration Stance:

The Pentagon CTO echoed Trump's assertion that AI safety concerns represent a "hoax" and "scam," suggesting a "coordinated campaign to scare people" benefiting incumbent AI players. He called some extinction warnings "death-cult-like philosophies." However, Michael acknowledged existing Federal Trade Commission laws remain enforceable.

Market Context:

Despite Republican rhetoric against government intervention, Trump's second administration has taken equity stakes in various private companies, including a 10% stake in one firm and a "golden share" in another. The administration strongly supports rapid AI and data center growth to compete with China, making regulatory restraint a strategic priority.

Michael suggested companies could voluntarily pause development to address safety concerns, though he questioned what regulations could prevent incidents like recent AI security breaches.