Cabot Phillips

He said, hey, this is great.

There's been this Wild West scenario for AI for years where no one has really known what government regulation was going to look like.

And so this regulation will actually be a good thing because we now know the set of rules we're playing with.

There's more government support.

But there are smaller emerging AI companies that say, yeah, of course the big guys are fine with this because they have huge legal teams that can navigate these new regulations.

They have a lot more money.

They have a lot more lobbying influence.

And they have a lot more access to the White House.

And so, of course, the big boys want this because it might stifle competition.

That has been the big rub.

And then the other part of this has been Trump...

trying to streamline AI regulations at the state level.

So we know that there are a number of states, especially red states, that are concerned about these AI data centers popping up in their states for potential health reasons.

And they're also concerned about what the implications are of having all this software at the state level for privacy, things of that nature.

The Trump administration, they do not want this patchwork type of regulations for AI.

So they've issued a new executive order

basically giving Attorney General Bondi the right to overrule state-level regulations on AI.

And they're now threatening these states saying, if you guys pass AI regulations that they said would enact onerous AI laws, whatever that means,

then we can restrict federal funding and federal broadband grants to your states.

So Trump is trying to keep each state from having their own regulations.