WASHINGTON — In September, just weeks before Americans were set to vote in this year’s midterm elections, a sudden panic over the dangers posed by artificial intelligence caught the White House off guard. A whistleblower had gained viral attention warning the technology could soon pose an existential threat .

President Trump was quick to dismiss concerns , evoking urgency in the U.S. race to achieve global dominance in superintelligence. He rejected calls to negotiate guardrails on the most advanced AI models with China’s leader, Xi Jinping, weeks later, during a prime opportunity to do so in Washington.

Privately, the president expressed concern that public hysteria over AI could jolt markets that have become excessively concentrated in AI-related stocks.…