Shares of BigBear.ai Holdings (BBAI -1.62%) are flying today. The firm's stock is up 10.2% as of 12:20 p.m. ET, but it gained as much as 15.1% earlier in the day. The upswing came as the S&P 500 and Nasdaq Composite indexes were up 0.6% and 0.3%, respectively.
BigBear is benefiting from President Trump's revoking of a key Biden executive order regulating artificial intelligence (AI) companies. The firm also announced a new CEO would take the reins.
Trump scales back Biden's regulations
Soon after his inauguration, President Trump signed a flurry of executive orders -- 26, the most of any president on the first day in office -- including an order that revokes a number of previous orders and actions taken by President Biden. Labeling them "harmful," Trump took sweeping aim at the previous administration, including by revoking a 2023 mandate designed to rein in the burgeoning AI industry.
At least for now, AI firms will no longer be required to share safety test results with the federal government, and the Commerce Department's AI Safety Institute will be no more.
This gave AI stocks a boost, especially BigBear.ai, whose AI solutions are targeted toward defense. Biden's executive order focused especially on AI in this area.
New year, new CEO
On Friday, BigBear.ai announced that it has a new CEO, one with a connection to the new president. Kevin McAleenan served as acting secretary of the Department of Homeland Security during Trump's first term.
