Pakistan, Dec. 12 -- US President Donald Trump announced he will withhold federal broadband funding from states whose AI regulations, in his administration's view, hinder American innovation. Trump argued that 50 different state rules create a patchwork of regulation that slows growth and complicates compliance, especially for start-ups. The order calls for a centralized federal approach to ensure US AI companies can innovate freely.

The administration said it will evaluate state laws for conflicts with federal AI priorities and block those in conflict from accessing the $42 billion Broadband Equity Access and Deployment fund. White House AI adviser David Sacks said the order targets only the most "onerous" state regulations, while rules...