Zuckerberg Told Trump a National AI Regulator Is a Flawed Idea

In a previously unreported phone call last month, Meta CEO Mark Zuckerberg expressed opposition to plans for a national AI regulator, wading into a fraught White House policy debate that could shape the future of artificial intelligence oversight in the United States.

The proposal, championed by Nobel Prize winning Google DeepMind scientist Demis Hassabis, would create an independent organization modeled on the Financial Industry Regulatory Authority (FINRA), the organization that oversees the securities industry under SEC supervision. White House officials envision this body reviewing advanced AI models and testing them for potential risks before they are deployed more broadly.

The Private Call

When President Donald Trump spoke with Zuckerberg directly the week of August 17, Zuckerberg said he opposed the proposal, according to a senior White House official directly familiar with the conversation.

Another person familiar with the matter said Zuckerberg did not ask Trump to change his position, but told him that people the White House might appoint to the regulatory body should reflect Trump’s own approach to AI, which is widely seen as light touch. That person added that Trump called Zuckerberg first.

The exchange came after senior White House officials previewed the proposal with Trump and separately with major tech companies, including Meta, OpenAI, and Anthropic, in mid August.

The FINRA Model Explained

FINRA is an industry led body that serves as a front line regulator in the U.S. securities markets, crafting and enforcing new rules for broker dealer firms. It reports to the SEC and is led by a board made up of representatives from FINRA member firms. The self regulating organization oversees more than 3,000 financial firms, which help fund the body.

While an AI industry watchdog may be tasked with vetting new models, FINRA has little involvement in signing off on new investment products. The idea for an AI regulator was popularized by Hassabis, who suggested in a July essay that the US establish a new “standards body” modeled after FINRA to handle AI risks such as emerging cybersecurity threats.

Competing Pressures in the White House

The call between Zuckerberg and Trump underscores the competing pressures on senior White House officials as they craft AI policy. Any plans they develop remain vulnerable to private objections from industry delivered directly to Trump.

The debate comes at a fraught moment for the administration. AI agents are increasingly able to browse the web, operate software, and write code with limited human supervision, and have escaped human control in a string of high profile incidents. Used by a hostile actor, they could also identify vulnerabilities or automate cyberattacks at a speed that outpaces existing safeguards.

Zuckerberg’s involvement is not the first time the administration’s AI policymaking process has faced last minute drama. In May, David Sacks, the tech investor and White House advisor, upended the process of issuing a sweeping executive order on AI by calling Trump the morning of the planned signing ceremony and convincing him to cancel it.

Two Paths Forward

The call with Zuckerberg did not quash the idea of a new industry regulator and it remains under consideration in the White House. Officials are considering two paths: a FINRA style regulator, or a voluntary industry group modeled on the Motion Picture Association, as Sacks has proposed for AI.

Sacks, Trump’s former AI and crypto czar, is also opposed to the idea of a government regulator, calling it “a DMV for AI” where models “get lined up in a queue, waiting to get their test done.” On his podcast, Sacks outlined a system that he said has support from Elon Musk: creating an AI regulator like the Motion Pictures Association, which administers the voluntary MPA film rating system that gives movies “R” or “PG 13” labels.

Industry Perspectives

In an August essay, Zuckerberg expressed skepticism about strict government oversight of new AI models, arguing that while the government and AI companies should collaborate closely, any policy which slows down a model’s release, even by a month, would “add significant risk to American leadership” over China.

The biggest AI companies haven’t publicly endorsed or opposed the plan for a regulator, though Anthropic co founder Jack Clark posted favorably about the idea on X in July. Anthropic declined to comment when asked about its stance, while OpenAI and Google didn’t respond to requests for comment.

What’s at Stake

FINRA, a private not for profit membership organization that operates under SEC supervision, writes and enforces rules for its over 3,000 member brokerage firms and 630,000 registered representatives. Its operations are funded by member fees, while rule changes are subject to SEC review.

An AI version of FINRA funded by industry fees could attract the necessary technical talent to conduct testing and create common criteria for assessing models. However, critics of the idea are concerned that voluntary standards and pre release testing could eventually be codified into law.

The Bigger Picture

The administration’s broader effort to balance security and innovation in AI policymaking, while allowing industry to lead, remains a priority. As the debate continues, the outcome will have significant implications for how advanced AI systems are developed, tested, and deployed in the United States.

The involvement of top tech executives like Zuckerberg, Musk, and Sacks in these policy discussions highlights the growing influence of industry leaders in shaping AI regulation. As AI capabilities continue to advance rapidly, finding the right balance between innovation and safety oversight will be one of the most critical policy challenges of the coming years.

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