Pentagon CTO opposes government stakes in AI firms, new rules

Pentagon official rejects government ownership of AI companies

The Department of Defense's chief technology officer has publicly opposed government ownership stakes in artificial intelligence companies, even as the Trump administration has acquired equity positions in other strategic industries.

Emil Michael told CNBC on September 16 that he hopes the government will not pursue nationalization or partial ownership of AI firms. "We don't want government to get in the middle," Michael said, noting that leading U.S. AI companies rank among the "biggest companies in the history of the world."

The statement comes as the Trump administration has taken a 10% stake in Intel and a "golden share" in U.S. Steel, now owned by Nippon Steel, according to details first reported by CNBC.

Resistance to expanded AI regulation

Michael repeatedly signaled opposition to increasing regulatory oversight of AI companies during his appearance on "Squawk on the Street." His position contrasts with warnings from industry leaders including Anthropic CEO Dario Amodei, who has called for slowing the development of rapidly improving AI models to address potential risks.

The Pentagon official characterized the debate as "tension between people who want to pre-regulate like Europe, and those who want to hold companies responsible for good products being developed that are aligned and safe." He suggested existing laws from the Federal Trade Commission provide sufficient oversight.

When asked about recent security incidents, including an AI hack of Hugging Face, Michael acknowledged the event as "concerning" but questioned what regulation could prevent such breaches.

Alignment with Trump administration stance

Michael's comments align with President Trump's position on AI development. The administration has pushed for rapid AI growth and data center expansion as part of its competition strategy against China. Trump has dismissed calls for AI slowdowns as a "hoax" and a "scam."

The CTO echoed administration claims of a "coordinated campaign to scare people to make irrational decisions that benefit some of these incumbents" in the AI sector. He referred to those promoting caution as advancing "extinction, death-cult-like philosophies."

Despite his opposition to government intervention, Michael suggested companies could voluntarily pause development "until they figure it out," though he stopped short of endorsing mandatory slowdowns.

Why it matters

The Pentagon's technology leadership publicly rejecting both government ownership and expanded regulation of AI companies signals how the Trump administration plans to approach AI governance. This hands-off stance creates a sharp contrast with European regulatory approaches and with concerns raised by AI company executives themselves. The position could accelerate U.S. AI development while potentially limiting oversight mechanisms as the technology advances rapidly. For business leaders planning AI investments and deployments, the regulatory environment appears unlikely to tighten in the near term under current Pentagon and White House thinking.

These details were first reported by CNBC.