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Pentagon CTO draws line against government AI stakes, questions case for new rules

9/17/2026

Government equity in AI companies would place federal money and federal interests at the capital table of companies the same government holds authority to regulate.

The Pentagon's chief technology officer has said that arrangement should not happen, and has questioned whether new rules on AI belong on the policy agenda at all.

The statement arrives as President Donald Trump has angrily pushed back against calls from industry and lawmakers to slow AI development or expand its regulatory perimeter.

The two mechanisms the CTO addressed, equity and rule-making, represent the main ways the federal government could structurally embed itself in the AI sector.

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