AI Slowdown Push Becomes Flashpoint in U.S. Midterm Race

◆Washington Playbook by Correspondent Lee Tae-kyu <245> Trump: "Sick conspiracy theory, only China would be happy" He sees the AI race with China as deciding the nation's fate A bursting AI bubble could shake his standing; chip index tumbles Democrats tap into rising hostility toward data centers MAGA figure Bannon joins pro-human summit in rare crossover

International|
| Updated 2026.09.15. 08:20:51
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By Lee Tae-kyu (Commentary)classic@sedaily.com
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U.S. President Donald Trump answers reporters' questions aboard Air Force One on Nov. 13, local time. AP-Yonhap - Seoul Economic Daily International News from South Korea
U.S. President Donald Trump answers reporters' questions aboard Air Force One on Nov. 13, local time. AP-Yonhap

Trump blasted the go-slow argument three times in a single day on Sept. 14 (local time). "There is a sick conspiracy theory aimed at AI and data centers," he wrote on Truth Social, adding that "the only country that would be happy about this is China."

Trump's insistence that AI development must not be slowed stems from competition with China. His view is that AI goes beyond a simple technology race and will determine a nation's fate across industry, the economy and the military, and that the U.S. cannot afford to slow down because of domestic pushback while China moves quickly. "Whoever wins in AI will win," Trump said, stressing that "AI and data centers will be the greatest driver of economic development in history — bigger than oil, gold, diamonds and even the internet."

CNN analyzed that another reason for Trump's harsh criticism is the risk that the go-slow argument could burst the AI bubble and shake his political standing. Indeed, as calls for slowing down emerged within the industry, the Philadelphia Semiconductor Index plunged 5.9% that day, with AI-related indexes falling across the board. U.S. online outlet Axios reported that Trump and the "AI accelerationist alliance" believe industry leaders have raised the go-slow argument to shape regulation in their own favor.

Democrats, by contrast, emphasize that regulation is urgently needed. In particular, with data centers — AI's signature infrastructure — driving up electricity bills and generating noise, fueling growing resentment among American voters, the party is crafting a strategy to court votes by opposing AI.

U.S. political outlet Politico reported that key Democratic strategists recently held a closed-door meeting in Washington, D.C., to discuss how to respond to AI. At the meeting, Morris Katz, the strategist who led New York City Mayor Zohran Mamdani's campaign, said: "If House Democratic Leader Hakeem Jeffries and Senate Democratic Leader Chuck Schumer joined hands tomorrow and said, 'The first thing we'll do if Democrats win the majority is pass a bill banning data center construction,' Democrats would win more seats."

Sen. Chris Coons (D-Del.) urged congressional action, saying that "calling Americans who are worried about the existential risks posed by AI 'traitors' or 'betrayers' is further evidence that President Trump does not properly understand the situation." Trump wrote that day of the go-slow argument: "Conspiracy theorists, traitors, betrayers and leakers, beware!" Progressives including Sen. Bernie Sanders (I-Vt.) argue that AI research should be halted altogether. Democrats plan to hold a caucus meeting this week to agree on a plan to slow AI.

Some voices in the Republican camp are also sympathetic to AI regulation. The U.S. nonprofit Future of Life Institute plans to hold a "pro-human" assembly on Sept. 15 to assess the substance of claims that AI threatens humanity, with Sanders and Steve Bannon — the former White House chief strategist in Trump's first term and a godfather of the Make America Great Again (MAGA) movement — set to attend. Axios described it as "an unexpected alliance between a leading figure of the progressive movement and an influential voice in the MAGA camp."

※ Subscribe to Lee Tae-kyu's Washington Playbook for analysis of how Trump's policies will affect South Korea's economy and security. - Seoul Economic Daily International News from South Korea
※ Subscribe to Lee Tae-kyu's Washington Playbook for analysis of how Trump's policies will affect South Korea's economy and security.

Original reporting by Lee Tae-kyu (Commentary) for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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