Zuckerberg Opposes Trump’s AI Regulator as Musk Calls for More Power and Data Centers

The developments highlight growing tensions within the Trump administration over how to balance AI innovation, safety, and regulation as the U.S. competes with China for technological leadership.

According to a POLITICO report, Trump called Zuckerberg during the week of August 17, when the Meta chief expressed opposition to a proposed regulator modeled on the Financial Industry Regulatory Authority (FINRA). The organization would potentially review advanced AI models and assess risks before they are deployed more broadly.

Zuckerberg reportedly did not directly ask Trump to abandon the proposal. Instead, he argued that any officials appointed to such a body should reflect Trump’s generally light-touch approach to AI regulation.

Zuckerberg Pushes Back on FINRA-Style AI Regulator

The proposed artificial intelligence oversight body was promoted by Google DeepMind CEO Demis Hassabis, who has advocated for a standards organization modeled after FINRA to address emerging risks from increasingly capable artificial intelligence systems.

Zuckerberg raised concerns about a proposed national AI regulator during a previously unreported call with Trump last month. Source: Politico via X

The proposal has gained support from some White House officials, but it faces opposition from parts of the technology industry.

Zuckerberg has previously warned that excessive regulation could slow the release of new artificial intelligence models. In an August essay, he argued that even a one-month delay could create significant risks to U.S. leadership as China rapidly develops its own artificial intelligence capabilities.

The debate comes as AI agents become increasingly capable of browsing the internet, operating software, and writing code with limited human supervision. Concerns about cybersecurity and artificial intelligence systems operating beyond their intended limits have increased pressure on policymakers to establish stronger safeguards.

The White House is now considering at least two competing approaches: a FINRA-style regulator with greater government involvement and an industry-led framework that would rely more heavily on voluntary standards.

Sacks Favors Industry-Led AI Oversight

White House adviser David Sacks has emerged as a prominent opponent of creating a traditional government regulator for artificial intelligence.

Sacks has compared such an organization to a “DMV for AI,” arguing that companies could be forced to wait for regulatory approval before releasing new models.

Instead, Sacks has proposed a system modeled on the Motion Picture Association, which uses voluntary ratings to establish industry standards while limiting direct government intervention.

The proposal reflects a broader push within the Trump administration for a relatively hands-off approach to artificial intelligence. At a recent G20 technology meeting, U.S. officials promoted principles calling for regulation to focus on novel situations rather than imposing broad new restrictions on rapidly evolving artificial intelligence technologies.

However, the FINRA-style proposal remains under consideration, leaving the administration facing competing demands from AI safety advocates and major technology companies.

Musk Warns of AI Power Crunch

The regulatory debate coincides with another challenge facing the U.S. artificial intelligence industry: securing enough electricity and infrastructure to power its expansion.

Musk and Zuckerberg both called for additional AI data centers during the G20 Innovation Ministerial in Chapel Hill, North Carolina, on September 1.

Zuckerberg and Musk called for expanded AI data centers and greater electricity capacity at the G20 Innovation Ministerial in North Carolina. Source: @AFP via X

Zuckerberg said the expansion could require hundreds of thousands or potentially millions of skilled-trade workers as companies race to build new facilities. He also pointed to difficulties Meta is already facing in finding enough skilled workers to construct its data centers.

Musk focused on the energy requirements behind the buildout, warning of a potential power shortfall as demand from artificial intelligence data centers increases.

“There will be a significant power shortfall next year,” Musk said, arguing that insufficient electricity could give China an advantage in the global artificial intelligence race. He added that his companies were working to build additional power generation alongside their data centers.

Musk also estimated that artificial intelligence could eventually increase the size of the global economy by 20% to 30%, equivalent to roughly $20 trillion to $30 trillion annually.

Data Center Expansion Faces Public Resistance

The push for faster AI infrastructure is facing growing opposition in communities across the U.S.

Residents and local officials have raised concerns about electricity consumption, higher utility costs, environmental effects, and noise from large data centers. The issue is becoming increasingly politically significant as the U.S. approaches the 2026 midterm elections.

Trump has also criticized opponents of artificial intelligence data centers, adding another layer to the growing debate over how quickly the country should expand its artificial intelligence infrastructure.

At the same time, U.S. states are beginning to confront the practical challenges of meeting projected data-center electricity demand. Texas, for example, has moved to scrutinize large requests for new grid connections amid concerns that some proposed projects may not ultimately materialize.

The competing pressures put the administration in a difficult position. Technology executives want fewer regulatory barriers and faster infrastructure development, while policymakers and communities face growing concerns over safety, energy consumption, and the impact of large-scale data centers.

For the Trump administration, the question is increasingly not whether the U.S. will expand its artificial intelligence industry, but how quickly it can do so without allowing regulation, electricity constraints, or public opposition to slow the race.