President Trump signed a narrowed executive order on artificial intelligence and cybersecurity Tuesday.

Why it matters: The new order lets the White House kick the can down the road while they consider new rules for cutting-edge AI models and what to do about AI's advanced cybersecurity capabilities.

Driving the news: The surprise move comes more than a week after Trump cancelled the release of another version of the order with stricter requirements, saying it could hurt American competitiveness.

What they're saying: "Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components," the executive order states.

"As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country."

What's inside: Per the executive order, national security agencies will be required to bolster cybersecurity abilities and create a "cybersecurity clearinghouse."

Within 60 days, the Treasury Department, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology and White House officials must "develop a classified benchmarking process to assess advanced cyber capabilities of AI models" and decide when a model should be treated as a "covered frontier model."

The intrigue: Former White House AI czar and current adviser David Sacks and National Economic Council deputy director Ryan Baasch pushed for language prohibiting the creation of mandatory government licensing, according to a source familiar.

"Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models."
Sacks has continued to play an influential role from his new perch outside the White House. The abrupt cancellation of the earlier executive order occurred after his involvement, though the president himself was also not keen on it.
White House staff, Sacks and Trump discussed the executive order Monday, according to sources familiar. Other tech industry sources had told Axios negotiations were ongoing as of Tuesday morning.

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