Pentagon CTO doesn’t want US to do with AI firms what it did Intel & others

The Pentagon's chief technology officer (CTO) has said that he does not want the Trump administration to acquire equity or seek partial state ownership in artificial intelligence (AI) companies, even as the government has already bought into firms like Intel and Nippon Steel-owned US Steel.

Speaking to CNBC, Emil Michael was asked whether Washington might eventually take partial ownership stakes in AI companies — a possibility that has gained traction as worries mount over how quickly the technology is advancing. His response was blunt: “I hope not.”“We don’t want [the] government to get in the middle. That doesn’t really go well in terms of nationalisation,” he said, noting that the US AI leaders are among the “biggest companies in the history of the world.” The current administration has already built up a portfolio of stakes in private firms, and the list includes a 10% holding in Intel and a “golden share” arrangement in US Steel, which now operates under Nippon Steel.

Emil Michael’s pushback on tighter regulation

Michael also made clear he isn't in favour of tightening regulatory control over AI companies, a stance that puts him at odds with some industry voices. For example, Anthropic's CEO Dario Amodei has previously urged the sector to slow down the pace of releasing increasingly powerful models in order to reduce potential risks.

Explaining his position, Michael described a divide between those who favour pre-emptive regulation similar to Europe's approach and those who believe companies should instead be held accountable for building products that are safe and properly aligned before they ever reach the public.He did say that the recent security breach involving AI platform Hugging Face was troubling but he wasn't sure what form of regulation could have prevented such an incident.Even while rejecting calls for heavier regulation, Michael cautioned that it would be risky to hand over complete trust to a small group of AI company chiefs. He said his focus instead is on making sure existing rules are properly enforced, noting that the Federal Trade Commission already has “a ton of laws on the book” that apply.The Trump administration has been a vocal backer of rapid AI expansion and data centre growth, viewing it as key to maintaining an edge over China. President Donald Trump has reacted sharply to suggestions that the industry should slow down or face stricter oversight, branding them a “hoax” and a “scam.”