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Benzinga
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Ananya Gairola

Bernie Sanders Pushes Back On Trump Moves To Strip AI Powers From States: 'It Will Make The Oligarchs Richer While Millions Lose Jobs'

Washington,,Dc,,Usa,ñ,January,29,,2025:,Sen.,Bernie,Sanders

On Monday, Sen. Bernie Sanders (I-Vt.) criticized Donald Trump's reported plan to override state-level AI rules, calling it a gift to wealthy tech leaders at the expense of workers.

Sanders Blasts Reported Deregulation Push

The senator’s comments came after reports emerged that Trump was considering a sweeping executive order to weaken state authority over artificial intelligence.

Taking to X Sanders said, "Trump wants to deregulate AI and let the richest people on earth do whatever they want. Unacceptable."

He argued that deregulation would widen inequality and threaten millions of jobs, adding that AI should "must improve life for all of us — not just make a few multi-billionaires even more powerful."

See Also: Xi Jinping Says US-China Trade Relations Maintain Positive Momentum As Trump Considers Allowing Nvidia AI Chip Sales To Beijing

Bernie Sanders Warned Against AI Led By Musk, Bezos

He has previously also expressed similar sentiments.

Just last week, speaking at Georgetown University, Sanders said that AI can make life better — but only if it's shaped by leaders who aren't solely focused on serving tech billionaires.

He referred to Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk and Amazon.com, Inc. (NASDAQ:AMZN) founder Jeff Bezos, saying that it is highly unlikely that these billionaires are investing billions in AI to shorten the workweek, improve health care access or tackle climate change.

Musk is currently the richest person on Earth with a net worth of $441 billion, according to the Bloomberg Billionaire Index. Meanwhile, Bezos is ranked fifth on the Index with a net worth of $248 billion.

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What Is Inside Trump's Draft AI Order

Earlier, it was reported that Trump plans an aggressive federal strategy that would give Washington broad power over AI policy. The plan included creating an AI Litigation Task Force inside the Department of Justice, tasked with challenging state laws deemed harmful to innovation.

The Commerce Department would also be responsible for identifying non-compliant states and potentially restricting their access to rural broadband funds.

The proposal specifically mentioned California's new AI safety rules and Colorado's law targeting algorithmic discrimination.

The draft directed agencies to carry out Trump's AI Action Plan within 90 days.

White House Reportedly Puts Plan On Hold

However, it was later reported by Reuters that the White House paused the draft order, citing concerns over political and legal backlash from states unwilling to surrender regulatory control.

China Competition Adds Pressure

Trump previously warned that China could "easily catch us" in the global AI race without a nationwide U.S. framework.

His comments followed investor Kevin O'Leary's warning that China is "crushing" the U.S. on power capacity — a point echoed by Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang, who cited China's lower energy costs and faster permitting as long-term advantages.

Benzinga's Edge Stock Rankings show Nvidia still delivering strong Momentum, Growth and Quality, holding a firm long-term uptrend even as its short- and mid-term trends soften. Click here to see how it compares with peers.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

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Photo Courtesy: Joshua Sukoff on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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