SAN FRANCISCO — A new Trump administration directive that could affect states’ artificial intelligence funding drew heavy criticism but a few sighs of relief on Wednesday from lawmakers and interest groups in tech-heavy California.

Many in this blue state criticized the White House for potentially forcing California to choose between continuing to regulate AI or missing out on federal AI investment dollars. To them, the language, part of President Donald Trump’s AI Action Plan, raised the specter of Congress’ failed effort to place a moratorium on state and local AI regulations.

For others, the plan raised as many questions as it answered. Peter Leroe-Muñoz, senior vice president of tech policy at the Silicon Valley Leadership Group, whose members include Amazon, Uber and Apple, said it was not clear what “burdensome” state AI rules the plan warned against meant, or what dollars could be at risk if the administration decides they exist in California.

...