White House AI czar David Sacks on Tuesday downplayed the risk that coveted American AI chips could be smuggled to bad actors, and expressed concern that regulating U.S. AI too tightly could stifle growth and cede the critical market to China.
“We talk about these chips like they could be smuggled in the back of a briefcase. That’s not what they look like. These are server racks that are eight feet tall and weigh two tons,” Sacks said at the AWS summit in Washington.
“They don’t walk out doors. It’s very easy to basically verify that they’re where they’re supposed to be,” he said.
The comments indicated President Donald Trump’s approach to AI could be centered on expanding markets abroad for U.S. AI chips and models. Former President Joe Biden had emphasized policies that countered risks the chips could be diverted to China and used to bolster Beijing’s military.
“I do worry we’re on a trajectory where fear could overtake opportunity and we end up sort of crippling this wonderful progress that we’re seeing,” Sacks said, citing a raft of bills in state legislatures seeking to regulate AI, as well as permitting challenges facing companies seeking to build the data centers that power AI.







