Former SEC Chair Warns US AI Firms Face China Model Competition and Safety Concerns

Gary Gensler, former chairman of the U.S. Securities and Exchange Commission, said in a Bloomberg Radio interview on September 29, 2026, that American artificial intelligence companies face near-term challenges, including competition from Chinese models and the possibility of safety guardrails.

Gensler cited an incident earlier this year in which an OpenAI model breached systems at tech company Hugging Face, and expressed concerns about AI capabilities. While safety measures could be implemented, he said, competition with China represents a "significant and far-reaching variable."

In early September 2026, some leading figures in the AI industry called for slowing the development of the most advanced models, a proposal quickly rejected by President Donald Trump. Trump also opposed an international agreement aimed at establishing safety guardrails for AI.

"That's a real challenge. I know the president called it a scam," Gensler said, referring to Trump's previous remarks dismissing AI risk concerns. "I disagree with the president on that."

Gensler noted that U.S. AI companies are investing heavily, but questioned whether revenue would justify the spending. Despite America's current lead in the field, he added, U.S. companies could still adopt products from Chinese competitors.