'You're making a mistake': The last-minute call to Trump that exposed a stunning White House rift

By PHILLIP NIETO, US POLITICAL REPORTER Published: 15:48, 28 May 2026 | Updated: 15:53, 28 May 2026 Donald Trump was preparing to sign a sweeping executive order to rein in America's AI giants. Then one phone call from a billionaire ally killed it at the eleventh hour, exposing a bitter rift tearing apart his own West Wing, according to a new report from Politico.  The executive order would have created an oversight process for companies developing advanced AI models to submit their products for federal review before release.  The White House action aimed to address fears that powerful AI models could help America's enemies launch devastating cyberattacks or other havoc.  The call last week came from David Sacks, Trump's former AI and crypto czar, who urged the President to scrap the order.  The reversal blindsided West Wing staff who had believed, until that moment, that the administration was marching in lockstep. Top White House officials assumed Trump had already signed off on the directive and are livid that Sacks went around them to lobby him directly, according to the Wall Street Journal. 'David Sacks, just having supported what [the group was] doing, just thought better of it, and contacted the president and said, "I think you’re making a mistake,"' a senior White House official told Politico. The call last week came from David Sacks, Trump's former AI and crypto czar, who urged the President to scrap the order pushing more oversight on companies developing artificial intelligence Susie Wiles and Scott Bessent are seen as moderates, lobbying for rules that let AI companies voluntarily give the US government access to their latest models Pete Hegseth, on the other hand, is pushing for the Pentagon to erect more barriers against advanced AI models that could pose national security risks The shocking sabotage has revealed three main camps in the West Wing battling over the direction of AI policy.  Sacks favors lighter regulation so US industry can compete with China.   Pete Hegseth, on the other hand, is pushing for the Pentagon to erect more barriers against advanced AI models that could pose national security risks. 'David [Sacks] wants more of a hands off approach to Al and Hegseth doesn’t think it goes far enough,” a second White House official told Politico. Susie Wiles and Scott Bessent, however, are seen as moderates, lobbying for rules that let AI companies voluntarily give the US government access to their latest models. 'Susie, as much as she’s trying to straddle the middle line, she’s very much concerned, and is a bit more hawkish than middle of the road,' a source told Politico. The order that was killed earlier this month could return to the President's desk, as officials note that Trump may yet change his mind on the matter. One official told Politico that the directive isn't canceled but merely postponed, and while a clause or two might be revised 'But it’s also possible that we talk to the president about it, and he says, "Yeah, that sounds logical. Let’s just go do it"' the official added.  No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.