US President Donald Trump on Thursday signed an executive order aimed at preventing state-level regulation of the burgeoning artificial intelligence industry, a gift to tech corporations that bankrolled his inauguration and are currently funding his White House ballroom project.

Trump's order instructs the US Justice Department to establish an AI Litigation Task Force with a single mandate: sue states that enact AI laws that the administration deems "onerous and excessive." The order also threatens to withhold federal funding from states that implement AI regulations.

Public Citizen, a watchdog group that has tracked increasingly aggressive AI influence-peddling in Congress and the administration, said Trump's order "grants his greedy Big Tech buddies’ Christmas wish."

"This reward to Big Tech is a disgraceful invitation to reckless behavior by the world’s largest corporations and a complete override of the federalist principles that Trump and MAGA claim to venerate," said Robert Weissman, Public Citizen's co-president. "Everyone should understand why this is happening: During and since the last election cycle, Big Tech has spent at least $1.1 billion on campaign contributions and lobby expenditures. Big Tech corporations poured money into Trump’s inaugural committee and to pay for his garish White House ballroom. A major Big Tech and AI investor is serving as Trump’s 'AI czar' and driving administration policy."

"While Trump has ensured the federal government is doing almost nothing to address the harms that AI is already causing, states are moving forward with sensible AI regulation," Weissman added. "These include efforts to address political deepfakes, nonconsensual intimate deepfakes, algorithmic pricing manipulation, consumer protection measures, excessive data center electricity and water demand, and much more. Big Tech is whining about these modest measures, but there is zero evidence that these rules are impeding innovation; in fact, they are directing innovation in more positive directions."

Jenna Sherman, a campaign director focused on tech and gender at Ultraviolet Action, said Trump's order "only has one group of winners: his wealthy donors in the tech sector."

"Every other person loses from this wildly unpopular move. And not just in theory, as stripping away state AI regulations puts many—namely, women and children—at risk of real harm," said Sherman. "These harms of AI—which the Trump and the tech sector are clearly happy to ignore—are already here: non-consensual deepfake porn sexualizing women and girls, children being led to suicidal ideation by AI chatbots, and AI-powered scams and crimes targeting older Americans, especially women, to name but a few."

The US Chamber of Commerce and other corporate lobbying organizations representing tech giants such as Microsoft and Google celebrated the order, predictably characterizing it as a win for "small businesses."

The leaders of California and other states that have proposed and finalized AI regulations were defiant in the face of Trump's threats of legal action and funding cuts."

"President Trump and Davis Sacks aren’t making policy—they’re running a con," said California Gov. Gavin Newsom, referring to the scandal-plagued White House AI czar. "Every day, they push the limits to see how far they can take it. California is working on behalf of Americans by building the strongest innovation economy in the nation while implementing commonsense safeguards and leading the way forward."

Trump signed the order after the Republican-controlled Congress repeatedly rejected efforts to tuck a ban on state AI regulations into broader legislation.

"After months of failed lobbying and two defeats in Congress, Big Tech has finally received the return on its ample investment in Donald Trump," Sen. Ed Markey (D-Mass.) said in a statement Thursday. "With this executive order, Trump is delivering exactly what his billionaire benefactors demanded—all at the expense of our kids, our communities, our workers, and our planet."

"A broad, bipartisan coalition in Congress has rejected the AI moratorium again and again," he added, "and I intend to keep that streak going. I will use every tool available to challenge this indefensible and irresponsible power grab. We will defeat it again."