Senator Bernie Sanders isn't mincing words about Donald Trump's reported AI strategy. On Monday, the Vermont independent slammed a draft executive order that would essentially kneecap state-level artificial intelligence regulations, calling it exactly what you'd expect: a handout to the wealthy at everyone else's expense.

The Senator's Blunt Assessment

After reports surfaced about Trump's sweeping plan to consolidate AI oversight in Washington, Sanders took to X with characteristic directness: "Trump wants to deregulate AI and let the richest people on earth do whatever they want. Unacceptable."

His argument isn't subtle. Sanders warned that stripping states of regulatory power would accelerate inequality and put millions of jobs at risk. The technology, he argued, "must improve life for all of us — not just make a few multi-billionaires even more powerful."

Not His First Rodeo

This wasn't a one-off reaction. Just last week at Georgetown University, Sanders made similar points about who gets to shape AI's future. He specifically called out Tesla Inc. (TSLA) CEO Elon Musk and Amazon.com, Inc. (AMZN) founder Jeff Bezos, questioning whether billionaires pouring money into AI are really doing it to shorten workweeks, improve healthcare access, or fight climate change.

The numbers he's talking about are staggering. Musk currently sits atop the Bloomberg Billionaire Index with a net worth of $441 billion. Bezos ranks fifth at $248 billion. Sanders's point is pretty clear: when people with that much wealth drive policy, workers tend to get squeezed.

What's Actually in the Draft Order

So what was Trump planning? According to earlier reports, the executive order would establish an aggressive federal framework giving Washington broad control over AI policy. The centerpiece: an AI Litigation Task Force within the Department of Justice specifically designed to challenge state laws the administration considers harmful to innovation.

The Commerce Department would get the job of identifying states that don't fall in line and could potentially cut their access to rural broadband funding as punishment. The draft specifically targeted California's new AI safety regulations and Colorado's law addressing algorithmic discrimination.

Agencies would have had 90 days to implement Trump's AI Action Plan.

Hitting the Pause Button

Here's where it gets interesting. Reuters later reported that the White House has shelved the draft order, at least temporarily. The reason? Concerns about political and legal blowback from states unwilling to surrender their regulatory authority. Turns out states aren't thrilled about being told to sit down and shut up on tech policy.

The China Factor

Trump's motivation isn't just about deregulation for its own sake. He's previously warned that China could "easily catch us" in the global AI competition without a unified national approach.

That warning came after investor Kevin O'Leary claimed China is "crushing" the U.S. on power capacity for AI infrastructure. Nvidia Corp (NVDA) CEO Jensen Huang has echoed similar concerns, pointing to China's lower energy costs and faster permitting processes as long-term competitive advantages.

Speaking of Nvidia, the chip giant continues showing strong momentum, growth and quality metrics despite some near-term trend softening. The company remains central to any conversation about AI infrastructure, regardless of which regulatory framework ultimately prevails.

So here's where we are: Sanders sees oligarch enrichment, Trump sees Chinese competition, states see federal overreach, and the White House sees a political minefield. The draft order is paused, but the underlying tension between innovation speed and worker protection isn't going anywhere.