Trump Rejects AI Slowdown, Puts China Race First

As generative artificial intelligence drives explosive growth in demand for computing power, data centers have become essential infrastructure in the global race for technological strength. Yet such massive projects place enormous pressure on power grids, water supplies and household electricity rates, forcing local governments to weigh environmental protection against economic benefits. The issue affects not only the U.S. lead in computing capacity but also its global contest with China for dominance in artificial intelligence.

New York Governor Kathy Hochul signed an executive order on July 14, 2026, imposing a one-year pause on approvals for new large AI data centers consuming more than 50 MW of power and directing the state Department of Environmental Conservation to conduct an assessment. U.S. President Donald Trump subsequently condemned the policy as politically motivated. He warned that it would hand China potentially billions of dollars in construction investment and tax revenue, along with job opportunities, and called on the New York state government to rescind the executive order immediately.

Frontier AI systems are nearing capabilities that can autonomously handle complex tasks, while safety testing, alignment research and regulation risk lagging behind. That tension has put rival developers Anthropic, OpenAI and Elon Musk’s xAI in rare agreement that the industry should pace frontier-model advances. Their stance matters because a unilateral slowdown could reduce catastrophic risks but also surrender commercial and strategic ground, exposing the conflict between AI governance and Washington’s drive to stay ahead of China.

On Sept. 12, Anthropic Chief Executive Dario Amodei warned that, without a slowdown, AI could within six to 12 months direct swarms of agents capable of taking over the internet, potentially causing hundreds of billions of dollars in damage. He said gaining one or two years could materially advance alignment work. OpenAI CEO Sam Altman and xAI founder Elon Musk backed the call the same day. President Donald Trump rejected slowing the race on Sept. 13 while speaking in Ireland, saying the United States leads China and “whoever wins AI wins,” though he acknowledged a need for some guardrails.