Elon Musk’s position on Trump’s budget cuts is a ‘dangerous combination’ that risks sparking conflict with his AI empire.

Musk’s planning work is in line with his current work in running his business which includes electric power plants Teslarocket company Images of SpaceXmedia platform X, and AI startup xAI. Many are worried that he will use his position in the Trump administration, leading the Department of Government Employment (DOGE), to promote his companies or harm his competitors.

Richard Painter, former White House attorney general under former President George W. Bush and now a law professor at the University of Minnesota, said. Chance that Trump’s decision to give DOGE an advisory role rather than a government one was appropriate. According to Painter, the settlement allows Musk and his DOGE chief, Vivek Ramaswamy, to avoid losing their wealth in accordance with laws that prohibit government employees from participating in management and making agreements that may affect their financial interests.

But, Painter added that advisory committees like DOGE must still follow certain rules. It includes making documents publicly available, holding public meetings, and allowing public participation. “Everyone knows that these people have conflicts of interest, yet they are giving advice to the government, and that’s fine, but you have to follow what they are showing publicly,” he said.

Musk’s arguments stem from everything related to transportation and communication, and therefore the organizations in his areas of budget cuts. His arguments also include the fast-paced world of AI, which promotes advanced technologies, creates global power, and raises social and cultural questions.

As venture capitalist and Trump critic Reid Hoffman wrote recently Financial TimesMusk’s direct ownership in xAI creates “a serious conflict of interest in implementing federal AI regulations for all US companies,” raising red flags about Musk’s influence on everything from government contracts, to controlling AI companies, to restricting technology exports.

And that’s just the beginning. Here are some of the most important AI arguments worth paying attention to:

AI policies via AI ‘czar’

Trump is considering a candidate I am the king coordinating federal policy and state use of emerging technologies, Axios reported. Musk is expected to work closely with whoever is chosen as AI chief, who will have marching orders to “put America at the forefront of AI” and “work with DOGE to use AI to eliminate waste, fraud and abuse, including fraud.”

Could Musk steer government AI contracts to his company, xAI? They can, said Richard Schoenstein, vice chairman of litigation at the law firm Tarter Krinsky & Drogin. In theory, Schoenstein explained, Musk’s xAI could benefit from favorable contracts, but it could also force the government to destroy competitors such as OpenAI and Anthropic. He called Musk’s dual role as a businessman and adviser to Trump “terrible.

For example, Musk has long complained that the government is destroying his businesses. Now, he can use his new DOGE position to remove any government obstacles to xAI, AI in general, or his other business interests, Schoenstein said.

However, Musk’s views on AI are not always straightforward. For example, he supported other AI legislation such as California’s pending bill SB-1047, which seeks to establish safety standards for advanced AI systems.

But Musk still has a stake in the government’s future decisions around AI, including how AI companies can access data. For example, last month, X has quietly changed its password for Grok, an AI chatbot developed by xAI, to clarify that it uses X data to train xAI models. As the head of DOGE, Musk can support policies that allow the use of data in the development of AI, including loosening restrictions on user privacy.

Schoenstein is also critical of the amount of private information Musk has collected about US citizens through his various businesses. X, xAI, and its Starlink web service have released data about what users look for online and who they are. They fear that Musk, because of his relationship with Trump, can now share information with the government. “Although some social media companies have historically protected the privacy of their users, having a guy who has X and has xAI and has a satellite system, especially in the absence of control, is dangerous,” Schoenstein. he said.

AI-powered autonomous driving

Whether Musk will use DOGE to benefit the future deployment of Tesla’s AI-powered self-driving cars is another question. For years, most recently at the October show, they have promised to bring robotaxis that can transport people without drivers.

Musk’s position with DOGE would allow him to aggressively push for restrictive regulations that benefit Tesla. For example, the National Highway Traffic Safety Administration (NHTSA), which oversees vehicle safety standards, has a big say on Tesla’s Autopilot and Full Self-Driving (FSD). According to a Bloomberg report, Trump’s transition team now wants NHTSA policymakers to lead autonomous driving efforts, possibly in an effort to reduce regulations to speed up development.

Such a change would come at a critical time for the self-driving car industry, Schoenstein said. And it would not want to remove the organization. “You can change the leadership” and establish a “business-oriented chapter, and that will reduce the bite,” he said.

Environmental policies that promote electric vehicles (EVs) are also important to Tesla’s success. Musk’s DOGE position could help him shape these regulations in Tesla’s favor, either by pushing for stricter emissions regulations that benefit EV manufacturers or by showing how subsidies and tax incentives are distributed. For advocates of good behavior, this is a good thing. But Musk also helped cut Biden’s $7,500 tax credit for EVs, which could affect other automakers.

xAI’s Memphis supercomputer

Another possible conflict involves Colossus, the most advanced xAI machine in Memphis. Musk said it would be the world’s most advanced AI computer, and last month he said he wanted to double its computing power.

It would require a more of electricity. At the beginning of this year local organizations agreed to provide xAI with 150 megawatts, subject to approval by the Tennessee Valley Authority, a federal agency. VAT to be approved additional electricity earlier this month, even as civil rights groups and environmentalists complain about the problems with the city’s electricity grid and the decrease in air quality in the area.

This authority is administered by a committee appointed by the President and confirmed by the Senate. Most of the board member’s five-year terms could expire during the incoming Trump administration, which opens the door to full members who are friendly to Musk’s interests. “There are concerns about this relationship,” Amanda Garcia, senior attorney at the Southern Environmental Law Center, said. Chance.

His organization has complained that xAI has already installed gas turbines at an old factory in Memphis where xAI’s main computer is located. These generators provide electricity directly to the warehouse without relying on the public power grid.

Memphis residents and environmental groups have expressed concern over pollution from the gas-fired generators. Additionally, xAI may have installed and operated without obtaining the necessary permissions, according to Garcia. The agency has referred the matter to the EPA, which is reviewing the matter. In particular, the EPA would be an important agency under the supervision of the DOGE.

Garcia noted that Trump’s pick for EPA commissioner, Lee Zeldin, has already said he wants to make the US a world leader in artificial intelligence. Those words, Garcia said, “seem odd for an EPA administrator to say,” but perhaps music to the ears of Musk and his fellow AI entrepreneurs.

Conflicts of interest are not uncommon

Musk’s conflict through DOGE may seem unprecedented, but it has already been difficult when it comes to outside counsel. It reached out to AI products under the first Trump administration and President Biden, said Marc Rotenberg, president and founder of the Center for AI and Digital Policy.

The past Google For example, CEO Eric Schmidt, still a technology consultant at Google-parent Alphabet, became chairman of the National Security Commission on Artificial Intelligence in 2018, advising on national AI strategies. Since 2016, he has also served on the Defense Innovation Advisory Board, which coordinates technology companies at the Pentagon. Additionally, during the Biden administration Schmidt chaired the National Security Commission on Artificial Intelligence.

In response to criticism of the controversy over his work with the Defense Innovation Advisory Board, Schmidt. he said Emails and other communications were searched. So they won’t see or be told about any business between Google or Alphabet and the Department of Defense, he said in 2018.

Regarding Musk, Rotenberg said, “he should not benefit from the government’s proposals – I don’t think there should be any doubt.” He then added that the problem is much bigger than one person. “This has been a long-standing topic, especially in technology, for years.”